In one sentence
The release and distribution of loan funds at closing, per the settlement statement and closing instructions.
The longer version
Disbursement is the moment the loan funds: proceeds flow to payoffs, escrows, fees, and the borrower per the agreed statement. It happens only after funding conditions are confirmed.
Disbursement mechanics, wet or dry, escrowed or direct, are governed by the closing instructions and reconciled on the settlement statement.
Common questions
- What is a closing disbursement?
- The release and distribution of loan funds at closing, paid out under the approved settlement statement and closing instructions.
- Who disburses the funds?
- Usually the title or escrow company, after confirming all conditions are met and recording is ready.
- What can delay disbursement?
- Missing signatures, an unresolved title requirement, a stale payoff, unverified wire instructions, or a last-minute change to the settlement statement.
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