Important Areas After Mortgage Funding Processes, Part 2

areas mortgage funding processes

In part one of this two-part blog series, we went over some of the initial areas you should be considering after your mortgage closes and your funds process. This is often a relief period for many buyers after what can be a complex mortgage acquisition and home purchase, but there are a few important details to be sure you don’t forget about.

At Altius Mortgage and our partners at Mortgage Ogden, we can help with the post-mortgage period for any of our fantastic mortgage loans throughout Utah. Here are a few other areas to consider here, including some tax considerations and a few property-related factors to think about.

Amortization Schedule

One of the first things many buyers do after receiving their mortgage funds is bring up their amortization schedule, which is usually available in download or printed form. This schedule shows exactly where your mortgage payments are going – which percentage is to interest versus principal, for instance, and other details. If this is not provided by your lender, you can use third party calculators to break it down yourself.

Property Considerations

A few areas to get right to work on when it comes to your new home:

  • Security: Whether this means a home security system, outdoor lighting or even something more significant like cameras for surveillance, ensure you and your family are secure and safe in the home. Another smart tip here: Get to know your neighbors, and consider participation in a neighborhood watch if one exists.
  • Renovations: It’s tempting to hold off on any renovations early in homeownership, often because you’ve simply dealt with enough recently with all the mortgage details. But home improvements early in the process can be a great idea, both because they’re easier to plan (you haven’t fully moved in yet) and because they bring upgrades right away, rather than being forced into these years later.
  • Claiming property: You can also go onto sites like Zillow or Redfin and claim your property once your sale closes. On these sites, you can track future home value, other local property values, and even edit home facts and pictures if you make upgrades.

Insurance and Taxes

A big part of your mortgage agreement will include details on who pays areas like property taxes, mortgage insurance and homeowner’s insurance. Some of these funds may be paid by the lender through an escrow account, while some will be yours alone. Whatever your arrangement, be sure you’re holding up your end from the start.

Post-Mortgage Spending

As you may have been told during the mortgage acquisition process, spending is often limited as you attempt to acquire a mortgage. You don’t want to lower your credit score or change your debt-to-income ratio, both huge factors in getting a great mortgage.

Once you have your mortgage, though? You’re free to make larger purchases you may have been holding off on for these reasons. Be careful not to spend so much that you risk problems with your new mortgage payments, of course, but the risk of lowering your credit score or other ratios is not as meaningful now.

For more on important areas to consider after closing a mortgage, or to learn about any of our mortgage loan services, speak to the staff at Altius Mortgage today.

Important Areas After Mortgage Funding Processes, Part 1

important areas mortgage funding processes

Within any mortgage loan situation, much of the attention is quite understandably paid to the period during which one acquires the mortgage. Between assessing credit and finances, searching for homes within your budget and finalizing your purchase, there’s a lot to think about during this phase of the process.

At Altius Mortgage and our partners at Mortgage Ogden, we’re thrilled to help with every stage involved in acquiring a mortgage, whether you’re a first-time homebuyer or an experienced real estate flipper. But we also help all our clients with the flip side of this equation: The period of time after you receive your mortgage funds. This two-part blog will dig into some important areas to look at as you move forward into homeownership and begin paying off your mortgage.

Confirm Funding

For starters, confirm that your mortgage actually came through and you have the funds required. Know that this process could take a few days after you sign your loan documents – refinances, in particular, tend to take at least three days due to a rescission period that’s often applied. After a reasonable period, however, confirm with your lender that funds have been paid.

Paperwork and Early Details

There are several areas of paperwork to organize in advance of receiving your funds, and it’s always good to double-check and review them now. Some basics to consider here include:

  • Simple details: Monthly payment amount, mortgage insurance costs, interest rate, closing costs and more. If you used an adjustable-rate mortgage, check the margin and index plus your first adjustment date.
  • First payment: Always take the time to learn when your first payment is due, something more buyers than you’d expect forget about with all the other details going on. Your first payment will usually be due after a month of full homeownership, though this depends on which part of the month you close during.
  • Escrow refunds: Many buyers make the smart choice to pad cash during closing, just in case there are any unforeseen issues. This may lead to you being owed an escrow refund, which you should follow up on in the days following closing with the escrow officer.

Loan Servicer Details

In many mortgage cases, loans are taken out with one bank or lender, but are serviced by another. If this is the case, you’ll receive a letter in the mail soon after closing, informing you of a notice of transfer. This will include the details you need for making your payments to the right company.

Automatic Payment Setup

Making mortgage payments on-time is very important, and most buyers today utilize modern automatic payment capabilities that avoid any possibility of errors here. If you prefer to make manual payments each month, at least set a monthly reminder to ensure there’s never a slip-up.

Beware Scammers

Mortgages are public record, and unfortunately due to the volume of money involved in them, a couple types of scammers often pop up in the immediate aftermath of you signing your loan papers:

  • Junk mail: Companies will try to fool you using what looks like legitimate emails or paper mail pieces, trying to act like a loan servicer, mortgage protection insurance company or other entity.
  • Refinance solicitation: Even just months after taking out your original loan, you’ll often get correspondence about the amazing qualities of a refinance. Be very careful here.

For more on areas to cover after mortgage funds have come through, or to learn about any of our mortgage loan services, speak to the pros at Altius Mortgage today.