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What exactly is difference between closing versus closing and funding?

by kristi_mack584 from Gresham, Oregon. May 12th 2014 Reply


Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

"Closing" , or "going to closing" most often relates to signing documents in a real estate transaction. "Funding" is the act of the lender depositing the loan proceeds with the title officer; in a refinance, this normally happens on the third business day after the document signing date, thus "closing and funding".

May 12th 2014
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Michael Eiden (MichaelEiden)
#28 ranked lender in Oregon - 23 contributions

Closing simply means your have "closed" on your loan. Meaning, you signed all the loan documents. Funding simply means all of your signed paperwork has gone back to the lender. Once all conditions of the loan have been met (typciall 24-48 hours) they order the wire for the loan funds to be sent to title. Title then disburses the funds to the appropriate parties involved in the transaction. Your loan is now "funded" and released to record at the county. Once your documents are recorded at the county, buyer gets the keys!

May 12th 2014
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Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

You can have your closing, but until the deal funds ownership doesn't transfer. Sometimes referred to as a dry closing.

May 12th 2014
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Steve McCoole (loanman619@gmail.com)
#985 ranked lender in California - 20 contributions

These terms can vary depending on whether you are in a wet or dry closing state and the traditions of your state or area. In California, which is a dry state, borrowers sign their documents but that is not a closing. The lender will then review the documents or copies to make sure everything is in order and then fund the loan. After funding, the tile company records the new deed sometimes on the same day but in many counties not until the next day. Escrow does not "close" the transaction until confirmation of the recording is received from the county. At that point the new buyers can take possession of the property.

May 12th 2014
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Bill Cook (loanpro)
#667 ranked lender in California - 48 contributions

Funding usually happens one day before closing or if the loan is funded early in the morning,the loan may close the same day it funds.Funding is to pay off the seller, and/or existing liens (if a refinance) and related loan costs

May 13th 2014
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