Who is responsible for disbursing loan funds to the settlement agent at the appropriate time?

The lender is responsible for disbursing loan funds to the settlement agent at the appropriate time. In the mortgage transaction process, once all closing conditions have been met and the closing documents have been signed by the borrower, the lender releases the funds to facilitate the transaction. This is a critical step, as the funds provided by the lender are typically used to pay off any existing mortgages, cover costs associated with the sale, and ensure that the seller receives the proceeds from the sale.

Once the settlement agent receives these funds, they can then distribute them according to the closing statement, fulfilling the obligations of all parties involved in the transaction. The timing of this disbursement is crucial to ensure that the transaction can proceed smoothly and that all parties fulfill their financial commitments simultaneously.