Mortgage Funding Process: What Happens After You Sign

Introduction

Mortgage funding is when the lender sends the loan proceeds to the closing agent. For a purchase, the funds pay the seller and cover closing costs. For a refinance, they pay off the old loan. You receive the keys (for a purchase) once funding and recording are complete.

The Funding Sequence

1. You sign the loan documents at closing
2. The closing agent sends signed documents to the lender
3. The lender reviews and wires the loan proceeds to the closing agent
4. The closing agent disburses funds (pays seller, old lender, fees)
5. The deed and mortgage are recorded with the county
6. You receive the keys (for a purchase)

The timing varies. Some closings fund the same day; others the next business day. Your closing agent will explain the process for your transaction.

Recording

Recording is when the deed (transfer of ownership) and mortgage or deed of trust (lender's lien) are filed with the county recorder. This makes the transaction official and gives the lender a secured interest in the property. Recording typically happens on or shortly after the funding date.

When You Get the Keys

For a purchase, you receive the keys after the loan is funded and the deed is recorded. In some states this happens the same day as signing; in others (e.g., some states with escrow), it may be the next business day. For a refinance, there are no keys—you already own the home.

See What Happens at Closing

Frequently Asked Questions

What is mortgage funding?

Mortgage funding is when the lender sends the loan proceeds to the closing agent (title company or attorney). The funds are used to pay off the seller (for a purchase), pay off the old loan (for a refinance), and cover closing costs.

When does funding happen?

Funding typically happens after you sign the loan documents. In some cases it is the same day; in others, the next business day. The exact timing depends on the lender and state. You receive the keys (for a purchase) once funding and recording are complete.

What is recording?

Recording is when the deed and mortgage (or deed of trust) are filed with the county recorder. This makes the transfer of ownership and the lender's lien official. Recording usually happens on or shortly after the funding date.

When do I get the keys?

For a purchase, you typically receive the keys after the loan is funded and the deed is recorded. In some states this is the same day as signing; in others, the next business day. Your closing agent will tell you.