Day before closing paranoia. Can PMI be denied after clear to close? (FHA)

[mikes1984]

I know I have a case of the classic 'before closing paranoia' where I close this monday but I cant help but be paranoid and draw up all these senarios in my mind where it just all goes to hell the last minute. So my new paranoia fear is what if the last minute PMI gets declined and I suddenly cant close because I dont have PMI? First of all this is a FHA loan so is this possible? Does it happen? Or does the lender have to have the PMI in place before the lender can clear to close to begin with?

While we are at it, should I be worried about this kind of stuff? Is it true a 'clear to close' is pretty much the golden ticket? (Barring catastrophe like job loss or death ofcourse). Another thing is what if my processor forgot the homeowners insurance binder, could I get a binder the same day or does it take weeks? Ahhh, I just wish it was Monday already lol. Please help ease my fears.

[StartingOver10]

Really your CTC is the "golden ticket" as you put it.

Don't worry about anything now unless you made huge financial changes during the loan process, which you didn't do.

As to the MI for FHA, it comes with the loan and it doesn't have a separate approval process the way a conventional loan with MI has....so once you are approved FHA you are good to go.

Smile and relax, Monday is the big day!

[mikes1984]

Ok, thought so but im always paranoid about these things. Thanks!

[Jutz]

Agreed, FHA comes with a sweet bundle of PMI  Upfront and annual.

[mikes1984]

And as far as the homeowner's insurance binder, does that also have to be present before the clear to close issued and incase it was forgotton, can thatbe ordered the same day?

[Jutz]

You should have the binder at closing.  Has your lender helped facilitate the homeowners' insurance?  If so I'm sure they are quite comfortable with that piece, so closing should be a breeze.  If not, make sure you have your ducks in a row.  Your insurance should meet your lenders minimum requirements, and if you need any additional insurance (flood, tornado, etc) make sure you have that lined up and it is similarly up to their standards.