FHA Loans True or False: After Your Loan Has Been Approved
January 27, 2026
What these potential borrowers don't realize is that your home loan isn't "safe" until closing day when you make your closing cost payments, sign the paperwork, and accept the keys to your new home.
True or False: The "Clear to Close" status indicates that the lender has completed all underwriting and is ready to fund the loan.
True. The "clear to close" status indicates the underwriter has verified all conditions and authorized the settlement.
True or False: You can open a new credit card or buy a car after you receive your initial loan approval.
False. Lenders often perform a final credit check before settlement; new debt can change your debt to income ratio and disqualify your loan.
True or False: The FHA appraiser only determines the market value of the home and does not check for safety issues.
False. FHA appraisers must ensure the property meets HUD’s Minimum Property Standards for safety, security, and soundness.
True or False: You must receive the Closing Disclosure at least three business days before you sign the final paperwork.
True. Federal law requires this waiting period to allow you to review the final loan terms and costs.
True or False: The seller must repair hazards like peeling lead-based paint before the FHA loan can fund.
True. The property must satisfy all safety requirements identified in the appraisal before the lender releases the funds.
True or False: You can pay your "Cash to Close" using a personal check on the day of settlement.
False. Lenders and title companies generally require a wire transfer or a cashier’s check for closing funds.
True or False: An FHA escrow account pays for your property taxes and homeowners' insurance on your behalf.
True. The lender collects a portion of your monthly payment and manages these disbursements to protect the investment.
True or False: You should perform a final walk through of the home within 24 hours of closing.
True. This ensures the property condition remains unchanged and the seller completed all required repairs.
FHA Loan Articles
June 30, 2026FHA loans offer low down payment options and more forgiving credit requirements for borrowers who may not qualify for a conventional mortgage or need to save more money out of pocket at the front end of the mortgage. But even with more forgiving credit requirements, some borrowers are tempted to omit certain debt information from their home loan applications. What does it mean to conceal a debt or financial situation from your loan officer?
June 30, 2026Some borrowers start working on their credit scores but get impatient with the process because they can't predict when their efforts will change their FICO scores. How long does it take for your FICO scores to update when you pay off a loan, reduce your credit card balances, or take other steps to make yourself a better credit risk? The short answer is that credit reporting procedures are not standardized, and it may take more time than you realize to get those positive credit actions added to your credit report.
June 29, 2026Mortgage interest rates are "moving targets" shaped by national economic trends and the borrower's specific financial profile. What is your FHA loan interest rate? Much depends on the financial data you bring to the table. Lenders set interest rates daily based on a snapshot of market conditions, but the rate ultimately offered also reflects risk, equity, and the lending institution's internal operational costs.
June 28, 2026An FHA appraisal differs from a conventional appraisal. While the goal of a conventional appraisal centers on market value, the FHA appraisal also focuses on the buyer's safety and soundness. FHA lenders select the appraiser, not the home buyer.
June 24, 2026FHA loan closing costs vary by property price and geographic location, rather than by a single nationwide flat fee. Total settlement charges combine percentage-based fees, local government taxes, and marketplace service costs. If you are new to buying a home, you'll want to get familiar with the closing cost issues discussed here to avoid budgetary surprises later on.
