Cash Back At Closing
I hear the term "cash back at closing", but does that really mean at closing or after closing. I am closing on a loan on Friday, and was told that my check would be overnighted to me the following Wednesday. Is this the norm?
When you hear cash back at closing that refers to when you buy the property and get extra money financing the deal. Some lenders will table fund or fund the same day as closing. Some like yours wants the papers mailed to them to review and then they fund a day or two or three later. It is still considered cash back at closing even thought funding is delayed.
Hope this helps some
Ted Jr
That's called a dry closing and whether it's legal or not depends on which state you're in. There are a couple of lenders that will attempt to have the settlement company do the closing "dry"(no $$ until the next day or after). They seem to think that their company policy is more important than the laws of that state. As I'm sure you can tell by my attitude, this has happened to me lately. New Century is the one that did it to me in Maryland, a state that definately requires that purchases close "wet", or fund at the table.
Check into it. The best way is to ask the title company, a few days prior to closing, if "dry" closings are allowed. Sometimes they will know, sometimes they won't. Either way, they will check into it and pressure the lender, if need be.
hope this helps,
clear2close
[addsig]
I am assuming you are doing cash out refinanaing or getting 2nd mortgage to some cash out of your equity. The purchase and the investment property transaction should fund same day of the closing. If thisis your OO home, It should fund on 4 business days (includes Saturdays) after the closing. While you are waiting for the funding day, you have a right to cancel your loan. This practice is basically to protect the comsumers from getting ripped off.
Thank you. You have all been helpful in clearing this up for me.