Dry Funding

The term “dry” refers to the period between document signing and the release of funds, during which the transaction remains incomplete. During this interval, lenders may verify signatures, review closing documents, and ensure that recording requirements have been met. Once the lender approves the package, funds are distributed and the transfer of ownership is finalized. Although dry funding can extend the closing process by several days, it provides lenders with an additional safeguard against documentation errors and unmet loan conditions.