It’s exciting to move into a new home you’ve just purchased. Whether it’s brand new or an existing home, it’s still new to you. You’ve just made your way through a long process, maybe months or a year or more, searching, viewing homes, negotiating a deal and then all of the closing transaction process stuff. Once you sign at the closing table, you’re expecting to have your house keys handed to you and get to moving in.
That’s the best case result, and it’s usually the way things go. However, today’s buyers need to understand that there are two things related to the closing, the “settlement” and the “funding.” Settlement is all of the paperwork and signing, deed recording, etc. Funding is the handing over of the money to all involved.
Many real estate purchase contracts separate out those two events and they may even specify a later date for funding due to lender requirements to see certain documents before making the funds available. However, the common practice is to assume “table funding,” the funding of the deal at the closing table and immediate possession by the buyer.
There is a modified version of the Golden Rule at work in a real estate transaction. In this version, “he who has the gold rules.” The lender has the money, and they’re not going to give it up until everyone involved, from the principals through the title company and others have jumped through all of the proper hoops.
The lender is going to see virtually every document, survey, appraisal and agreement. Their underwriters will review them, and even after they bless them, they’ll review them again just before closing. When the lender’s happy, everyone is happy. However, until you’re handed those keys, it’s best not to have your moving van sitting in front of the home.
Extra storage costs will come your way if your movers can’t unload when scheduled because the lender wants a new version of a document and the funding goes past close of business that day. It won’t fund nor record at the courthouse until the next business day, so it’s worse on a weekend.
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