At BlueNotary we know officially closing your loan and going through the loan signing process is a big moment in the home or asset buying process. One of the most commonly asked questions from Sellers is “When can they expect to receive their funds?” On the other side of the equation, buyers are typically anxious to know “When can they receive their keys?”.
A late or delayed closing can be the difference between a family needing to sleep in hotel for a few nights. It can also result in a difference between interest rates if the closing is forced to be made on a different day.
The loan signing agent who is signing your documents may not be able to fully answer these questions for you, but they should do their best to facilitate you finding an answer.
Loan Signing Expert and Nationwide Closing Company founder Emily Garcia (EmClosings) goes over how a notary and service should properly go about answering these ever important questions.
(You can view the full EmClosings interview) as well as a transcript of this one below.
When Can Sellers/Lenders Expect Their Funds?
When sellers can expect to receive funds from a sale that involves loan closings varies based on the circumstances and the specific practices in the jurisdiction or region. However, generally speaking, during a real estate transaction involving a mortgage or other loan:
- At Closing: The loan closing process involves the buyer, seller, and often their respective representatives or agents meeting to finalize the transaction. This includes the signing of necessary documents, the exchange of funds, and the transfer of the title. Here’s a general timeline:
- Prior to Closing: The buyer’s lender prepares the loan documents and sends them to the closing agent (often a title company, escrow company, or attorney). The closing agent then prepares the HUD-1 Settlement Statement or its equivalent, which itemizes the funds received and to be disbursed in the transaction.
- Day of Closing: All parties meet, documents are signed, and the buyer (or their lender) provides funds to the closing agent. These funds often come in the form of a cashier’s check or wire transfer.
- After Signing: Once all documents are signed and verified, the closing agent will record the deed, which transfers ownership of the property.
- Disbursement of Funds: After all documents are signed and the deed is recorded:
- In some areas, funds are disbursed to the seller on the same day as closing, once everything is in order.
- In other areas, there may be a delay between closing and the disbursement of funds. This can be due to “funding conditions” imposed by the lender, or other local or regional practices. The delay can range from a few hours to a few days.
- Other Considerations:
- Sometimes, the lender might have “post-closing” conditions that need to be met before funds are released.
- If there are issues with the documents or other unforeseen problems, there can be delays in the disbursement of funds.
- It’s also worth noting that the seller might not receive the full sale price at closing, as there could be deductions for agent commissions, closing costs, or other agreed-upon expenses.
To get a specific timeline for a particular transaction or in a specific area, it’s best to consult with a local real estate agent or attorney familiar with local practices.
Is it the same process for all Loan Closings?
They’re all going to follow the same basic patterns. Here are some situations you might see a loan closed under below. Vehicle purchases are another common scenario you will see Loan Closings.
When Can Lenders Expect to Receive their Funds Video Transcript
Katie:
The other question that I wanted to ask you, because I just had this happen in my signing this morning, how do you tell notaries to answer when the signers inevitably ask, when will I get my funds?
Emily:
That really depends. I tell them depending what side you’re doing.
So if you’re doing well, the seller, they’re, yeah, it would be the seller. Yeah. I would say, it depends. Sometimes I do the buyer side as well. I’m like, oh, the buyer will be signing at two o’clock today. You should be having it. I tell ’em, I don’t know when the buyer, it depends really when the buyer signs, both docs need to be approved.
That I would call title and make sure, if I don’t know when the buyer signing, I’m like, Hey, I really depends when the buyer signs, if they haven’t already. We call title and make sure when they’re signing just to make sure when you can expect funds. Yeah. If I do know if I’m doing the buyer side and I do know when the buyer signing I’ll let them know. But I always say please call title to make sure we don’t have the answers to that.
Oh, yeah, that’s exactly I always reassured them like hey, listen as soon as I or if I have my mobile scanner I’m scanning it right now. So title has it right away so they can fund if the buyer signs, nothing will be delayed or as soon as I leave here. I am scanning everything back. Title company will have scan backs by 10 30 and I normally send them a text “Hey, by the way scans were sent to title or scans have been uploaded.
So I did everything in my… you know I did my part to make sure you’re getting your funds.
Katie:
Yeah, I do the same thing where it’s I’m, and I don’t say it like this, but it’s I’m just the notary. I don’t, know, but that’s a little bit out of our scope as far as like being able to answer questions specifically like that. Yeah, I would just refer to the title company and say if I’m doing a remote online, I would say, as soon as I send the documents over, I’ll include that in an email that you were asking so that way they can reach out directly to you. And then I just include it in an email saying, “hey, this is the problem”. I let title know, be like, hey, by the way, seller, wanted to know when they’re getting their funds.
Emily:
I got the same, I’ve got the same question for buyers. Hey, when am I getting my keys? Yeah, yeah. And I said some sellers are willing to give you the keys before they even see the funds in their account. That is the case sometimes. But if I tell them, Hey, really getting contact with your agent and contact with the seller, I’m sure as soon as they have the funds and, hit their account, we’ll be able to get keys.
So it goes, it really goes both ways. Sellers ask when they get their funds and the buyers ask when they get their keys. Yeah. And then for refinances, if their refinance is on their primary residence there’s a, they have a three day right of recession. Recession period.
So they get it. So I look at the CD and I see when it’s funding. I say, Hey, your loan is you’ll be getting, you’ll be expecting if they’re getting money back. You’re, you were getting your funds on your funding date, which is in three business days.
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