The Funding Process for a Mortgage. A mortgage loan is an arrangement in which a lender provides a borrower with money; the loan is secured by real property--a house--and paid by the borrower in installments over a designated time period.Do mortgage lenders have minimum mortgage amounts?
Mortgage programs backed by the government (FHA, VA and USDA) have no minimum mortgage amount. Home loans backed by Fannie Mae and Freddie Mac do not require a minimum amount. However, mortgage lenders almost always impose minimum mortgage amounts and/or extra fees for smaller loans.When will my refinance fund?
A mortgage refinance usually is not funded until three days after closing. This is because refinancing borrowers have a right to rescind -- cancel -- a mortgage transaction for up to three days after a closing.