Under Contract...Now What?
Final Ownership Details
Congratulations again on your upcoming closing!! As always, let us know what other questions you have…it is never ‘Good Bye’, it’s just ‘See You Later!’!
Below is some information we can review at closing, but here for your reference ahead of time:
1. Spam Mail – Once your home is closed and your loan and title documents are recorded through the county, you’ll get tons of papers that *appear* to be from the lender or the county. Look at the bottom of them, if there is anything with an out-of-state address or simply just asking for monies or information about you, it is *most likely* spam. This is true for anything asking for money for a copy of your deed, etc. If you are ever uncertain, just email or text me a photo and I can help. You already paid for your deed to be recorded so you will get a recorded final copy in the mail over the next month. If you need another one, you don’t need to pay what they want for it ($70-100), etc.
2. Essentially, the only ‘Real Mail’ you will get from closing is the following:
– Deed (copy that has been recorded with the county)
– Release Letter (from your lender)
– New Assumption Letter (if your lender isn’t servicing the life of your loan, you will receive this). Be sure to reconnect with them to verify that this information is correct prior to making any payments.
– TD 1000 (This document is from the county that is randomly mailed to select homes via an audit. You probably will NOT get this, but if you do, fill it out and send it back).
– HOA Welcome Letter (if you are purchasing a property with an HOA)
3. First Few Bills – I’d recommend you work to make your first payment manually a few days before the 1st of the month of which your payment is due. As always, you do what you feel is the best fit for you and what you are most comfortable with. The next few bills can be set up automatically, if you’d like. Otherwise you can pay manually. Regardless, I’d recommend always paying on/before the 1st of each month.
4. ESCROW – This is essentially a ‘savings account’ for your mortgage servicer to keep monies in there for when taxes and insurance is due. They’ll save it and then pay out the expenses so you do not have to pay these two costs when you receive A) Your statements from the county (for taxes next January) as well as from B) Your insurance company (for home/hazard insurance that is paid out at various times throughout the year, depending on your provider). Your Escrow Account may require more monies if your taxes or insurance go up. If so, you’ll get a letter asking for these monies. If there is ‘too much’ monies in the account at one time, you will get a check back. That is what it is from/for.
5. Review Bills on a monthly basis to ensure everything looks right.
6. Principal – If you wish to pay more than your mortgage payment is for, please ensure you specify it be for ‘principal’ so you don’t overpay your interest or 2nd mortgage as that will NOT be helpful to you.
That is all for now. Again, let me know what questions you have! I am happy to help with whatever I can to ensure you are best taken care of.