Dry Funding is a closing where the lender wires funds only after recordation of the security instrument is confirmed. Common in East Coast states. Borrower signs at closing but proceeds may not reach the seller for 1-3 business days. Lender carries less intraday recordation risk than in wet-funding states; trade-off is slower disbursement and occasional Friday-to-Tuesday gaps over weekends and holidays — worth modeling into any time-sensitive purchase contract.
Closing Stage