After you find a property that you are interested in buying, you typically need to apply for financing. Closing on a mortgage means that you get the keys to your home and have taken care of all of the necessary paperwork. However, after your mortgage closes, you still have work to do. You should focus on figuring out a few important details so that you are prepared to adjust to your new financial life with a mortgage. Keep reading on below to learn 4 things you should do after you close on a mortgage. Remember that if you are looking to apply for a mortgage, you should reach out to All American Financial Services today.
1. Enable Automatic Payments
The last thing you want to do as a new homeowner is missing out on a mortgage payment. This can have a negative impact on your credit score and also lead to penalties. The best way to avoid missing out on a mortgage payment is to set up automatic payments that transfer from your bank directly to the lender. Keep in mind that most mortgage payments are due on the first of the month, so set up your automatic payments to transfer a few days before just to be safe. You can even set up automatic reminders that your mortgage payment is about to go through just to double check if your bank balance can cover the payment.
2. Read Up On the Start Date of the Payments
Another important thing to do after you secure your mortgage is to read over the fine print. You are probably excited about getting your home and starting a new chapter of your life, but keep in mind that your mortgage payments will start soon. It’s important to find out when the monthly billing cycle for your mortgage begins so that you don’t miss a payment and are fully prepared to get your payments going.
3. Pay Property Taxes and Insurance On Time
It’s pretty common for the lender to pay your property taxes and insurance from your escrow account, but you should still double check to make sure that this is indeed the case. If you are planning to pay these by yourself, make sure you pay them on time and have money set aside each month to take care of them. Be diligent with your payments, otherwise, it could come back to haunt you.
4. Keep an Eye On Changes in Loan Servicers
You should always be aware of the lender that is servicing your mortgage loan because often times your mortgage will be sold off to another lender. That means you will have a new address to send payments too. Be on the lookout for any mail that is related to your loan so that you are always on top of things.
We hope this article has given you some great insight into the things to do after you close on a mortgage. Your financial health depends on timely payments and an understanding of how your loan works, so always keep that in mind.