What term is used for the agreement where a lender provides funds at closing?

The term "funding" specifically refers to the agreement or process in which a lender provides the financing necessary for a mortgage at the closing of the transaction. This involves the actual transfer of funds from the lender to the borrower or the parties involved in the transaction, enabling the purchase of real estate. During this stage, the lender releases the loan proceeds, allowing the buyer to finalize the purchase. It is a crucial step because it signifies that the borrower has received the financial resources needed to complete the sale.

Understanding this term is important as it highlights the culmination of the mortgage process, where all prior agreements and conditions set forth by the lender are fulfilled, and the funds are made available.