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When It’s Time To Close Your FHA Mortgage

November 15, 2023

FHA loans

Congratulations! You selected a home to buy with an FHA mortgage, your chosen FHA lender has approved your application, and the seller accepted your offer. Getting ready for closing is the next step in that process, and many newcomers ask what happens on Closing Day?

Closing day is a huge milestone for both buyers and sellers. The seller moves out and surrenders the property per your sales agreement and the borrower accepts the keys to the home.

On closing day, there is an update to the deed to the home, changed to be in the buyer’s name. You will also be expected to sign all the other paperwork needed to take possession of the home.

Closing day typically happens within two months of making the deal, but much depends on circumstances. One thing to know well before closing day is the lender’s policies and procedures for wire transfers on closing day.

Your lender is expected to share this information with you. Your lender should tell you what to do in case there is a question about how to proceed later on or if you were told by someone else not to follow a step your lender told you to take.

Beware Of Scammers

Scammers may try to fool a borrower into disregarding the lender’s closing day instructions for wire transfers or other methods of rendering the down payment. 

If you don’t want to fall prey to a mortgage closing scam, be sure to follow your FHA lender’s instructions to the letter, especially where wire transfer policies are concerned. Never disregard the lender’s instructions in this area.

If you have been asked by someone to do so, try personally speaking to a representative of the bank that you have contacted through the bank’s central phone number before changing ANY aspect of your closing procedure.

Know How To Contact Your Closing Agent

Be sure to get the name and contact information of your FHA loan closing agent. Do soin advance so you can contact the agent beforehand with any questions you have before the big day.

Do NOT schedule a moving truck to arrive at your new home on the same day as closing day. Why? There are multiple reasons, but the most important of which is the potential that your closing date could be rescheduled. It’s not uncommon.

Cash Needed To Close Your FHA Mortgage

Most borrowers are told not to bring cash or personal checks to closing day. You are required to pay your FHA lender in the form specified by your loan officer and you typically cannot make a down payment on an FHA mortgage in cash. You also can’t do it with a personal check in most cases.

Documents To Bring To Close Your FHA Mortgage Loan

You will need a valid state-issued photo ID, and documents showing proof of any insurance needed such as homeowners insurance or flood insurance. Also don’t forget to bring your loan documents.

If you need to transfer money for your FHA loan down payment or pay for closing costs, be sure the funds were transferred early enough to be in your account the day before closing day or as early as your lender recommends.

Joe Wallace - Staff Writer

By Joe Wallace

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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