What is the term for a loan settlement where the funds for the loan are disbursed simultaneously?

The term for a loan settlement where the funds for the loan are disbursed simultaneously is "Wet Settlement." In this type of settlement, the lender disburses the loan funds at the same time that the closing occurs, which means that all parties, including the borrower and seller, complete their transactions on the same day, often within hours of each other. This process can lead to quicker transactions and ensures that the seller receives their funds immediately upon closing.

Wet settlements are commonly used in real estate transactions, as they facilitate a seamless transfer of ownership, allowing both the buyer and seller to finalize their respective agreements without delay. This contrasts with a dry settlement, where the loan funds are not disbursed until certain conditions are met after closing, which can lead to a delay in the transfer of funds and ownership.