What happens after closing on your loan is not something a lot of lenders discuss. We do not want to leave you feeling confused or neglected. It is important to know what happens after closing so it can help you moving forward. After you have signed the final documents the lenders job is not over neither is the brokers (if used).
The company that collects your mortgage payments is your loan servicer. It could not be your lender. The Real Estate Settlement Procedures Act requires that if your loan will be serviced by someone else it must be written in writing by the lender or mortgage broker. This writing should be received as notice 15 days before the transfer of lenders. The writing must include when the transfer is effective, when the first payment is to the new servicer, and also the contact information for the new servicer.
You should receive your escrow account within the next forty-five days. If you used a mortgage broker they are not responsible for this or speed up the process. Your previous lender is responsible for getting you that amount and information. The form that you receive will show all of the payments that are expected to be deposited into your account and all of the disbursements that will be paid from the escrow account during the year. The amount will be disclosed each year from your servicer and include any new adjustments in your escrow payments for the new year.
The loan could have funding conditions that they must contact you for so do not be alarmed if you are asked for more information. These conditions are very important because the sooner they are completed the sooner your loan will be paid off by the new lender. It is very helpful to the broker and lender if you are in compliance with them to complete the loan.
If there are any servicing errors the RESPA requires the servicer to respond to you. You would write a Qualified Written Request that describes the problem and they must respond and make appropriate corrections within 60 business days. If they do not respond within that time you may file a complaint with the HUD’s Office of RESPA where you would describe the situation to them as well.
One of the most important steps after closing on your loan is making sure you make all your payments on time. You do not want to put you or your home in position where you will default on your loan. Even if you are having a problem with the lender do not stop making payments on your home. Before you decide to put another mortgage or lien on your home do your homework and look at other options.
The last thing you want to worry about is foreclosure. You do not want to lose your home so make sure you use all the resources that you have. The lender is there to help you and will even create a plan to help you keep your home. Lastly, be careful of scams. Never sign anything that you have not read or do not understand.