Funding is the final step in the process. This occurs after both parties (buyer & seller) have signed all the necessary paperwork, and the bank actually hands over the money so that the seller can be paid. Then you actually get the keys to your new home and the sellers finally begin smiling. In the good old days, funding typically happened at "closing", the loan officer would come with a check and everyone would sit around the table and eat cookies, tell funny stories, and sign papers. It is becoming more frequent that funding occurs only after the underwriter or a bank lawyer has reviewed the loan documents (and often takes one last look at your credit) and the money is wired to the title company who then disburses it. Sometimes this happens quickly but all too often it takes what seems a ridiculously long while and the smiles are fewer and farther between. In Waco, there are still a few lenders that do things the old fashioned way, it sure is a lot less stressful that way.
Now that you're up to speed on obtaining a mortgage, check back soon for the rest of the Real Estate 101 series:
2. Offers and Counteroffers
3. Under Contract and the Option Period
4. Closing
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