What Is Funding?
Funding: When the lender sends the loan money to escrow so the sale can be completed.
Funding is when your lender wires the loan proceeds to the escrow or closing agent. Escrow then pays the seller, the seller's lender and everyone else owed money from the transaction.
Timing
- "Wet" funding states: the lender funds at or right after signing, usually the same day
- "Dry" funding states: funding happens after the lender reviews the signed documents, often one to two business days later
Before funding
The lender may do final checks: a verbal employment verification, a review of the signed documents and any prior-to-funding conditions.
Good to know
You typically get the keys once the loan is funded and the deed is recorded, or as your contract specifies.