What does table funding refer to in loan settlements?

Table funding refers to a settlement process where a loan is funded through contemporaneous loan advances, meaning that the funds are provided at the same time as the loan closing. This is an arrangement commonly used in mortgage transactions, where the lender provides the necessary funds for the loan directly at the closing table. By doing this, it allows for a more streamlined process where the borrower receives the funds immediately, allowing the transaction to be completed efficiently.

In this context, table funding involves the lender or a third party holding the necessary capital to fund the loan right at the closing, facilitating the transfer of ownership and ensuring that all parties have their contractual obligations met in a timely manner. This method benefits both the borrower and the lender by reducing delays that can occur when other funding methods are used.