4 Things to Do After You Close on a Mortgage

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.

What to Do When Beginning Your Home Search

Saving up your money to purchase a home is one of the most exciting times in life. That being said, before you start hitting open houses and thinking about how much your family will enjoy a certain house, there are some important steps you should take. One of the most important things to do is determine where you will get your mortgage from. A great company like All American Financial Services can help you obtain the financing you need for your home purchase in a quick and easy way. Getting pre-approved for a mortgage is also going to make your life a lot easier during the entire home buying process. Keep reading on below to learn a few things to do when beginning your home search that is sure to be a big help.

1. Check On Your Credit Score

Even if you have been saving up to buy a home for years, if you have a poor credit score, you could be costing yourself a lot of money. It’s a great idea to look at your credit score before you apply for any mortgages so that you can take care of any issues and have a good idea about what types of interest rates you can expect on your mortgage. You can actually check your credit score for free with one of the major credit bureaus.

2. Find Out What Your Budget Is

Getting pre-approved for a mortgage is a great way to find out what your budget looks like realistically. You should have an idea before you even apply for pre-approval, but a mortgage lender running the numbers will give you an even more accurate figure. They will also help you figure out what kind of taxes and fees you will be paying in your area. You will learn about the minimum down payment requirements for the different loan types that are available to you. It’s a great idea to figure out what your budget is so that you are only focused on houses within your price range. Getting pre-approved for a mortgage can help you get a great idea about what a realistic budget is for you.

3. Gain the Upper Hand on Other Buyers

The real estate world is a competitive place. Sellers are looking for buyers that have funding and are ready to move forward with their purchase. If you get pre-approved for a mortgage from a great company like All American Financial Services, you will have priority over other buyers in the market that don’t have a pre-approved mortgage. That means you won’t have to worry about your dream house slipping away while you were waiting to figure out your financing.

We hope the tips mentioned above can help you secure the property you’ve always dreamed of owning. If you are looking for financing options, reach out to All American Financial Services today. We offer a variety of different loans and would love to help you take steps towards becoming a homeowner.

4 Important Credit Score Facts for Applying for a Mortgage

If you are interested in purchasing a new home, you will need to figure out a few things before you move forward. It’s important to save up enough money to comfortably put a down payment on your home. You also need to find a great loan provider like All American Financial Services to help you get the financing you need. Equally important is understanding that your credit score will directly impact the mortgage loan you receive. Your credit score is essentially what tells loan providers your worthiness as a borrower. If you aren’t too familiar with credit scores or would like to learn some of the essential bits of information on them, keep reading on below.

1. Check Your Credit Score for Free

You might be wondering what the best way to find out your credit score is and how much it’s going to cost you. The good news is that you can actually check your credit score for free. Just head over to the three major credit reporting bureaus and you can get one annual credit report for free. This is actually required by law. Checking your credit score also won’t have an impact on your score, so you don’t have to worry about negatively impacting your score just from taking a look. After you know your credit score, you will have a better idea about what kind of mortgage rates you are in the market for.

2. Your Credit Score is Calculated Using Formulas

Another important concept related to credit scores is understanding how they are calculated. Your credit score is actually calculated using a formula that involves your payment history, how much credit you are currently using, the length of your credit history, and the number of inquiries you have on your credit report. All of these things are assigned certain scores and then combined to determine your total credit score.

3. Your Credit Score Affects Your Mortgage

If you’ve been saving up and are looking to purchase a home soon, you should definitely understand how your credit score will affect your mortgage. It will directly impact your mortgage interest rates and loan amounts. If your credit score is over 720, you will be able to qualify for the best mortgage rates. The lower that your credit score is, the higher your interest rate on your mortgage will be. You also might not be able to qualify for certain lenders if your credit score is very low.

4. Improving Your Score Isn’t Too Difficult

If you are trying to get the best possible interest rates for your loan, you want the highest credit score possible. The good news is that you can actually improve your credit score fairly easily. The easiest way to make improvements is to start making all of your payments on time. Paying down your credit accounts can also improve your score. Try to avoid applying for a bunch of new accounts too if you plan on getting a mortgage anytime soon.