After signing closing documents how long max by law before you get funded?

  • June 19 2013 - Miami
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Answers (6)

Profile picture for Ana Levy
Long story short, all docs must be ok'ed by the bank before the order to release funds is given to the closing agent. Once the closing agent receives the "ok" from the bank, funds are disbursed. So, the real bottleneck in this is the bank as they are the ones who will have the final say. It could be a while if they are picky about things, even if you do walk out of the closing table with a stack of signed papers...

Hope this helps.
  • June 28 2013
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  • June 28 2013
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I have been conducting closings for the past 14 years and I am also a licensed closing agent. It is very rare now a days that a loan funds same day, due to the lengthy funding process which banks are forcing closing agents to follow, most of the time the funding happens next morning no later than that. There is really no requirement that I ever heard of for the bank to fund the longest I have seen was 72 hours but there is a requirement for Title Company to fund as fast as possible and record the documents in order to close the title gap. So my answer is I don't believe there is a "legal requirement" for the bank but for sure there is due diligence and an obligation for the title company to fund as fast as humanly possible.
I hope this helps
  • June 27 2013
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Good Afternoon Blanca,

Each state works differently on when a loan is funded. Here in Florida the loans generally fund the same day that the closing documents are executed. The closing agent faxes over to the buyer's lender the signed documents to get a clear to fund and so long as the closing has funds from buyer as well, the funding/disbursement will take place on the same day. If as Andrey indicates a closing is taking place on a Friday it would be beneficial to have the documents signed early in the day to ensure that the transaction does in fact disburse.
  • June 20 2013
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There is no law. There are some guidelines set by lenders. Normally, after all docs are signed, everything sent back to lender for final check. At that point they make sure all pages are signed properly and they also pull the credit report of the borrower and may call his/her employer to confirm that they still have a job. In most case funding happens either same day or next business day. Good practice, do not put fridays in contracts as a closing day. Try to set it on wednesday or Thursday. That way if lender delays for some reason, you can still close the same week instead of waiting over the weekend.
  • June 20 2013
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Do you think there's a law to that effect, Blanca? I don't. I think that the loan gets funded when the lender is good and ready to fund it, and if it doesn't fund in time to make the closing date agreed upon by the buyer and seller, that it's just too bad.

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  • June 19 2013
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