Mishnah Berurah — משנה ברורה

Recite the blessing - Immediately after the washing, one should recite the blessing, and there is no need to wait to dry the hands, and the drying of the hands does not prevent [one from reciting the blessing]. There are those who are stringent to not recite the blessing until after drying their hands, for they hold that the "impure spirit" does not leave the hands until after the drying, and they hold that it's forbidden to recite a blessing when one's hands have an "impure spirit" on them. But the opinion of the rabbinic authorities is not like that [Artzot Hachaim]. It's written in Seder Hayom that one should not touch their clothing until after they wash their hands, but in the Talmud, it does not seem that way [Magen Avraham]. See in Berakhot 51a:13 - "Do not take your cloak in the morning from the hand of your servant and wear it", because of destructive forces (ie. demons/angels of destruction), rather one should take it himself from wherever it is; even if the servant already washed his hands. The Talmud (Shabbat 50b:11) says "A person must wash his face, his hands, and his feet every day for the sake of his Maker". And in our countries, where we do not walk barefoot, there is no need to wash one's feet in the morning [Pri Megadim].