What does settlement mean in mortgage lending?

• A. The finalization of funds transfer, mortgage registration, and completion of the loan.
• B. The approval of the loan by the lender.
• C. The pre-approval stage before loan application.
• D. The monthly repayment schedule starts.

Answer: (A)

Settlement is the moment the loan transaction is completed: the lender funds the loan, the property's title is transferred into the borrower's name, and the mortgage is registered against the property. It marks the official completion of the purchase and enables the borrower to take possession, with regular repayments starting after settlement. This step happens after loan approval and pre-approval, and repayments don’t begin until settlement occurs.