what is meant by "funding" the loan?

Asked by jschweiker, Scottsdale, AZ Wed Jan 30, 2013

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Ryan Buckley, , Scottsdale, AZ
Fri Feb 8, 2013
Simply means that the lender has sent the money to the escrow account at the title company just before the closing.

Ryan Buckley Realtor®
Turning your Dream into an Address
Coldwell Banker Residential Brokerage
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Rob Ryan, Agent, Scottsdale, AZ
Thu Jan 31, 2013
Funding the loan occurs right before the close of escrow, usually the day before or the morning of the closing. Once the buyer's Lender has approved the loan, the Lender will wire the loan amount to the escrow account at the Title Company just before the closing. Once the Title Company confirms receipt of all funds from the buyer and mortgage company, and all title documents are signed by the Buyer and Seller, the Title Company can close the escrow and transfer title to the property.

Rob Ryan, Real Estate Professional
Gallery Collection
The Luxury Home Division of West USA Realty
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480-948-5554 w
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Jennie Miller…, Agent, Phoenix, AZ
Thu Jan 31, 2013
Do you mean in the process of buying a home? This usually means the lender has sent he money to the title company so the recording can happen. This may or not be the right answer since it is hard to tell from your question. Thanks!
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Phil Griffith, Agent, Scottsdale, AZ
Thu Jan 31, 2013
Not sure if this is a trick question or not.? All lenders can inform you as to what "funding the loan" is.
Once you are approved, and the escrow company sends all required, signed documents back to the lender, the lender sends a request to whomever they use for money to "fund the loan". Sometimes it is an "interim" lender because the loan originators sell the loan in the secondary market , usually called the investor. Most of the time the mortgage company, the ones you go to for the loan, have their "funding" line lined up, so they can "fund the loan" at closing. Then sell the loan, usually in a "package" of other, similar loans, to an investor. The investor has usually given the local mortgage company guidelines as to what kind of loans they will accept. It is quite a process, and, is what we in the real estate business need to keep you buyers happy !!
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Ben Walter, Agent, Scottsdale, AZ
Thu Jan 31, 2013
Yes, funding refers to the wire transfer of money from the lender to the Title/Escrow company, who then disperses the funds according to the settlement statement. The lender, from the initial loan approval all the way through to closing, has conditions that must be met in order for them to fund. These conditions will be things like appraisal, title report, possibly additional asset/income documentation from the borrower, etc. They also include signed copies of documents from the closing itself...so once all the conditions are met, the lender initiates the wire transfer. This combined with the borrowers down payment completes the purchase transaction (or refinance), and the new mortgage and deed are recorded.
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James Wehner, Agent, Scottsdale, AZ
Thu Jan 31, 2013
Funding the loan is when the buyer's lender has purchase money wired and received by the escrow/ title company. At the point the funds are received by escrow, the loan has been funded. All that is left from that point is for all of the necessary documents to be recorded with the county.

James Wehner
West USA Realty
Web Reference:  http://www.jameswehner.com
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Shahla Mentha, Agent, Scottsdale, AZ
Wed Jan 30, 2013
Funding the loan is after the lender has already sent the loan ducuments to the escow co and the buyer has singed them, then the lender is ready to send the loan amount for the buyer to purchase the house & close.
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Jose Dias, Agent, Scottsdale, AZ
Wed Jan 30, 2013
Funding the loan simply means that the lender has sent the money in. It is usually the last step before the sale is recorded.

I hope this helps.

Jose Dias, REALTOR
(623) 418-5700

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Laura Myers…, Agent, Scottsdale, AZ
Wed Jan 30, 2013
Simply the process oy your money from your lender going to proper account so the home can then get recorded. Funded is better version of the same word!
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Jane Grimm ~…, Agent, Scottsdale, AZ
Wed Jan 30, 2013
This is when the escrow officer and mortgage lender agree on the dollar amount and then the mortgage lender wires the money to the title company. Once the title company receives the wire they will double check all of the numbers and then file to record the documents. Hope this answers your questions. If any further help is needed please give me a call 602-549-7346 jane grimm
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