What are the remaining funds sent to the closing table after deductions from a loan called?

The remaining funds sent to the closing table after deductions from a loan are referred to as Net Loan Proceeds. This term specifically indicates the amount of money that a borrower ultimately receives after all applicable deductions, such as closing costs, fees, or any other expenses tied to the loan, are subtracted from the gross loan amount. Understanding this concept is crucial for buyers and lenders, as it affects the actual available funds for the transaction and can influence financial planning during the home buying process.

While closing costs refer to the fees associated with finalizing a mortgage, and loan proceeds relate to the total sum provided by the lender, it is the net amount after those costs are deducted that accurately describes what the borrower receives at closing. The term "residual funds" is not standard in real estate terminology concerning loans and closing operations, which makes it less applicable in this context. Therefore, net loan proceeds is the precise terminology used in real estate transactions to convey the funds available to the buyer after fulfilling all financial obligations tied to the loan.