Mortgage Process

What Happens After Closing on a Mortgage?

Let’s start off with what a mortgage closing is. Closing, or settlement, is the last step of the home buying process. At the closing, all necessary parties will gather to sign the final documents, and officially transfer ownership into your name, making you the legal homeowner of the property. Congratulations! That must be a big load off of your shoulders. But don’t relax just yet, as there are still a few things that should be taken care of post closing.

What to do after closing

Here are a couple of things you should consider as you move into your new home:

Getting a new driver’s license

These laws vary from state to state, but you will be required to change the address on your driver’s license at some point. Some states require its completion in 10 days, some in 30 days. Be sure to check your local state laws for more information.

Protecting important documents

Chances are you’ll be receiving a large quantity of completed paperwork at the closing. It’s important that you keep these documents in a safe and secure place in case they are ever needed. Consider getting a fireproof safe to house these documents.

Homestead Exemption

If you’re eligible, Homestead Exemption could help you save a good amount of money on your property taxes. This can be done by excluding part of the home value from a tax assessment. These rules vary depending on the state.

If Your Loan is Sold

Sometimes a lender will sell a borrower’s loan to another entity. Although this concept brings worry to many, there is very little cause for concern. The conditions of your loan cannot change when sold to another lender. The only change you’ll have to concern yourself with is where to send your payments now. Should your loan switch hands, you should receive a confirmation from both your new servicer, and your former servicer. You should not send a payment to a new servicer without receiving a confirmation from your former servicer. It is a common for scammers to fraudulently request payment from you.

Down the line

It’s important to understand how your loan will develop over time. If you have an adjustable rate mortgage, your payments may likely increase over time. You’ll want to be prepared for fluctuations in rates so you can prepare yourself. Taxes and insurance can also affect your monthly payments, even if you have a fixed rate mortgage. Sources: