Using a Closing Checklist for Your FHA Loan
October 8, 2025
The Closing Disclosure
The lender must give the borrower a Closing Disclosure form. This occurs at least three business days prior to the closing. The document shows the final terms of the loan.
A borrower should review this form carefully. The borrower should compare the form to the Loan Estimate they got earlier. Key items to verify are the loan amount, interest rate, monthly payment, and cash-to-close amount. The borrower must notify the lender about any errors immediately.
Final Inspection Before Closing
The final walk-through is the borrower's last chance to inspect the house. The borrower should verify that all required repairs have been completed. The borrower should test all systems, such as plumbing and electricity. They must also confirm that no new damage or problems have happened to the home in the interim.
Preparing Your Funds
The borrower must pay the "Cash to Close" amount on closing day. A personal check is not allowed. The borrower needs to get a cashier's check from a bank or arrange a wire transfer. The borrower should confirm the exact amount with the closing agent. If using a wire transfer, the borrower must verify the wiring instructions with the closing agent to prevent fraud.
Signing Paperwork on Closing Day
A borrower will sign many papers at the closing. The borrower should review each document before signing.
One key document is the Promissory Note, which essentially serves as your promise to repay the loan. It shows the loan amount and the interest rate. Another document is the Mortgage (also known as a Deed of Trust), which secures the loan with the property. (It lets the lender take the property if the borrower does not make payments.)
After the signing, the borrower gives the funds for the closing costs. The closing agent disburses the money to the seller and others. The agent must then record the new deed with the local government.
After the deed is recorded, the borrower officially owns the home and will receive the keys. The borrower should keep all closing documents in a safe place after closing day as they may be needed later, especially if you want to refinance.
FHA Loan Articles
August 19, 2026Homebuyers who have enough cash for a down payment still need to consider their full financial picture before choosing between a conventional mortgage and an FHA loan. Having cash on hand changes the math for both options, but savings alone won't make a conventional loan the automatic winner. Credit scores, current debt, and the type of property you want to buy all determine which loan will cost less over time.
August 11, 2026Homeowners with FHA adjustable-rate loans need to track their loans more closely. That is because FHA ARM loans start with introductory interest rates that eventually expire and are subject to change afterwards based on market rates. When interest rates rise, monthly housing payments climb on ARM loans, pushing many homeowners to consider refinancing into a fixed-rate mortgage.
August 10, 2026If you want to buy a home with an FHA mortgage, you must set up an escrow account to cover property taxes, homeowner insurance, and upfront closing expenses. While the FHA loan program has rules for funding these accounts, buyers often do not realize those rules can include approved and unallowed sources for escrow funds. What do you need to know before you set up and fund your escrow account for an FHA mortgage?
August 3, 2026Buying a home in a high-cost area requires understanding how FHA loan limits shape your financing options. Does the house for sale have a price above the local FHA loan limit? You may need to explore your jumbo loan options. There are conventional jumbo loans and FHA versions. Which is right for you? Much depends on your financial needs, plans, and goals for the loan.
July 30, 2026There is a common misconception about FHA loans that only a first-time home buyer can use the program. This is not true; repeat buyers can qualify for an FHA loan, but why does this misconception exist? Partially because state and local programs have first-time buyer requirements for down payment and/or closing cost assistance programs. So while you do not need to be a first-time buyer to get an FHA loan, you may need to meet that definition to qualify for down payment help.
