March 29, 2020

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Closing Day On Your FHA Home Loan

Closing Day On Your FHA Home Loan

What do you need to know about closing day for your FHA home loan? There is plenty of advice out there including the idea that you should not schedule loan closing AND moving trucks on the same day.

But why? Because there are some variables that could delay your closing day, and you don’t want to get stuck juggling TWO rescheduling needs instead of just one (to say the least).

Closing Day Delays

Your closing day could be rescheduled for any number of reasons–there could be an issue with the title, your appraisal could come in too low, you may pay for the home inspection only to find that there are problems with the home not covered by the appraisal.

Some issues are merely delays. Others could develop into a full-blown “buy or walk” situation; if your termite inspection shows too much damage you could be eligible to walk away from the transaction, but this will depend greatly on the language of your legally binding agreements.

Cold Feet

Yes, the buyer or the seller may develop second thoughts about the transaction and consider backing out.

If you are committed to the sale of the home but the seller is not, you may find yourself on shaky ground when it comes to a firm closing date unless you can discuss the sale with the seller to make sure the deal is still on.

Lender Requirements

In some cases, it’s the lender who gets cold feet. In some cases this is due to the borrower applying for new lines of credit after applying for the home loan. In other cases it may be that the borrower’s financial position has changed–a credit rating has gotten worse, a source of income has been lost, etc.

In these cases, the loan officer may choose to modify or even cancel the loan. Beware of major changes to your financial position once your home loan process has started.

Closing Day Options

Did you know you have the option to do some or even all of your closing digitally? Not all lenders offer a 100% digital close on mortgage loans, but much of your paperwork may be digital.

One reason some mortgage closing dates get delayed is because of incomplete or incorrect paperwork.

If you choose a digital closing day option, make sure all your submitted documents are complete including signatures and dates–even these can slow things down in some cases.

Remember that some issues related to closing day have to do with the state of the home itself, some have to do with the seller, and some may have to do with your own schedule or needs.

When you are making choices about closing day, it’s important to take into account the issues mentioned above.

Anticipating problems such as incomplete information on the loan paperwork, issues with the appraisal or the home inspection can help save you time and even money by the end of the loan approval process.

Joe Wallace - Staff Writer

By Joe Wallace

January 22, 2020

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 for (8) years and is currently the Associate Editor for

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About 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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