A table funding agreement is a legal document that outlines the terms and conditions of a loan transaction between a lender and a borrower. This type of agreement is often used in the real estate industry, particularly with mortgage loans.

Table funding agreements are necessary for the smooth transfer of funds from the lender to the borrower. The document spells out the responsibilities of both parties, including the disbursement of funds, repayment terms, interest rates, and other fees.

One of the key features of a table funding agreement is that it sets out the timeline for the transfer of funds. This timeline is usually very tight, with the funds needing to be transferred from the lender to the borrower within a matter of hours. This is to ensure that the borrower has access to the funds they need to complete the purchase of a property or project.

Another important aspect of a table funding agreement is that it establishes the roles and responsibilities of all parties involved in the loan transaction. This includes the lender, the borrower, any third-party service providers (such as appraisers or title companies), and any other entities involved in the transaction.

One of the benefits of using a table funding agreement is that it can help to reduce the risk of fraud or misappropriation of funds. By establishing a clear timeline and process for the transfer of funds, all parties involved can ensure that the transaction is completed in a timely and secure manner.

Overall, a table funding agreement is an essential component of any real estate transaction involving a mortgage loan. It provides a clear framework for the transfer of funds and helps to ensure that all parties involved are aware of their responsibilities and obligations. Whether you are a lender or a borrower, it is important to have a solid understanding of table funding agreements and their role in the loan process.