Congratulations! You’ve successfully navigated the intricate maze of paperwork, inspections, and negotiations to finally close on your dream home. But what happens next? After the champagne has been popped and the keys are in your hand, there are still a few things to keep in mind as you transition into life as a new homeowner.

  1. Prepare for a Flood of Junk Mail: One thing you might not expect after closing on your loan is the sudden influx of mail that appears to be from your lender. Don’t be surprised if your mailbox is suddenly inundated with offers for various insurance products, home warranties, or other services. While some of these offers may be legitimate, many are simply marketing tactics aimed at homeowners who have recently secured a mortgage. Be cautious and do your research before committing to any additional services.
  2. Beware of Unnecessary Insurance Offers: Among the barrage of mail you receive post-closing, you may encounter solicitations for unnecessary insurance policies. Some companies prey on new homeowners by offering coverage that duplicates what is already included in your homeowner’s insurance policy or by exaggerating the risks associated with homeownership. Take the time to review any offers carefully and consult with your insurance agent or financial advisor if you have any doubts.
  3. Your Loan May Get Sold: It’s not uncommon for loans to be sold to different loan servicers shortly after closing. This is a perfectly normal occurrence in the mortgage industry and does not affect the terms of your loan. Your new loan servicer will be responsible for collecting payments, managing escrow accounts (if applicable), and providing customer service for the duration of your loan. You should receive notification in writing if your loan is transferred to a new servicer, along with instructions for making payments and accessing your account online.
  4. Escrow Adjustments: After the first year of homeownership, you may notice an increase in your monthly mortgage payment, specifically the portion allocated to escrow. This is because it’s common for property taxes and homeowners insurance premiums to increase slightly year over year. Your loan servicer will conduct an escrow analysis to ensure that there are enough funds in your escrow account to cover these expenses. If there’s a shortfall, your monthly payment may need to be adjusted to make up the difference.
  5. Stay Organized: After closing, it’s important to keep all of your mortgage-related documents in a safe and easily accessible place. This includes your loan estimate, closing disclosure, promissory note, and any other paperwork provided by your lender or settlement agent. You may need these documents for tax purposes, refinancing, or in the event of a dispute with your loan servicer.
  6. Continue to Monitor Your Credit: Just because you’ve closed on your loan doesn’t mean you can let your guard down when it comes to your credit. Stay vigilant and continue to monitor your credit report regularly for any errors or unauthorized activity. Your credit score can impact your ability to refinance or take out future loans, so it’s important to keep it in good shape.

In conclusion, closing on your loan is a major milestone in the homebuying process, but it’s not the end of the journey. Be prepared for the post-closing experience by staying informed, being cautious of solicitations, and staying organized. And remember, if your loan gets sold to a different servicer or your escrow payment increases, it’s all part of the process. With a little diligence and preparation, you’ll be well-equipped to enjoy your new home for years to come.

Jim Woodworth
NMLS #23463