July 12, 2018
Need some tips to help you navigate your closing date for your FHA home loan? There are some important things to do and things NOT to do on closing day.
When your sale is final the seller or the real estate agent will give you the keys to your new home, but before you can get your hands on those keys, some important things must happen.
Read All Home Loan Closing Documents Carefully
FHA mortgage loans, like all other home loans, feature initial estimates of expenses and payments; the final numbers should be represented accurately at closing time and should not be estimates. If the numbers you were expecting don’t line up with what is in the closing documents, don’t let it go-ask for clarification.
Don’t sign incomplete mortgage closing documents or paperwork you do not fully understand. Ask questions BEFORE you sign.
Treat Your FHA Mortgage Loan Closing Day Carefully
Some people want to try to save time by scheduling their mortgage closing day at the same time as the moving trucks or contractors who must come to the home to do their jobs. Is this a good idea?
Not necessarily. Your mortgage loan closing date could be delayed due to circumstances beyond the lender’s control or yours; it is best to wait to schedule these services-especially where movers are concerned-until after your closing date just in case.
Schedule A Final Walk-Through Of The Property Before Your Closing Date
If you are buying a home with an FHA mortgage, you want to see that property again before the mortgage loan closing date to make sure the home is in the same condition that you thought it was earlier in the process.
Anything can happen between your last visit to the property and your mortgage closing date.
It’s not a matter of distrusting the seller, but rather a common-sense issue. You simply don’t know what condition the property might be in in the time that goes by until closing.
Has there been a big storm or blizzard since the last time you saw the property? Is the seller still occupying the home or is it currently vacant? If vacant, what is the condition of the home now, unoccupied?
When You Are Selling One Home And Buying Another With An FHA Mortgage
If you are selling your old home to purchase the new one with an FHA loan, be sure to ask about including a post-occupancy settlement agreement into the contract for the sale of your original home.
You want to consider adding a clause to your sales agreement to allow you stay at the old property for a specified amount of time after loan closing to facilitate your move into the new property, where permissible.
Talk to your loan officer about that agreement as it relates to your closing date for the new purchase loan and make sure that your dates are reconciled to avoid having to quickly vacate the old property without adequate time to prepare and pack.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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