Once a buyer’s loan documents are signed, all that remains is for the lender to review the loan package, ensure all funding conditions are satisfied, and…yes, fund the loan! Sometimes, it takes just one day to review the loan documents, and when you’re lucky, it is possible to fund on that same day.
When a lender wires the funds to escrow, recording typically follows the next day – this signals the close of escrow. But what if funding occurs on a Friday? County offices are closed during weekends. That means recording can only be completed the next business day, which is Monday. Meanwhile, the buyer is charged for loan interest for the Saturday and Sunday, since the funds have already been released by the lender.
Unless there is a compelling reason to close escrow a.s.a.p., it is most practical to delay funding from Friday to Monday, and close on Tuesday – thereby saving interest charges for your buyer.
Avoid unnecessary interest charges on weekends. Fund any day…except Friday!
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