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When a loan funds on a Friday but the home does not record until the following Monday, a significant issue that arises is that the borrower will incur interest on the loan during the period when the property is not legally theirs. This means that from the moment the funds are disbursed, the borrower is responsible for interest payments, despite not having legal ownership of the property until the recording occurs.

The loan agreement typically stipulates that interest accrues from the date of funding. Since the legal title is not transferred until after recording, the borrower essentially pays for the use of the funds without actually having a vested interest in the property. This delay can lead to financial complications, as the borrower may not be able to occupy or use the property until the recording is complete, while still being responsible for interest payments on the loan from the funding date. Overall, this highlights the importance of understanding the timing of funding and recording in real estate transactions.