It can be both exciting and stressful to close on a house. You might think the hard part is over once you get the keys and move in. But your relationship with your lender doesn’t always end on the day of the closing. A lot of lenders check in with borrowers after the closing to make sure everything goes smoothly during the transition period.
This article talks about what kinds of follow-up calls borrowers can expect from their lender after the closing, why lenders do this, and how to keep up with your new mortgage.
What to Expect from Lenders After Closing
Here are some common ways lenders follow up with borrowers after closing
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Disclosure at Closing: Your lender will send you a disclosure statement at closing that lists all the final loan terms, costs, and payments. Carefully read this document, and if you have any questions, call your lender.
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Mortgage Note: You’ll receive a copy of your mortgage note, which is the legal document detailing your responsibilities and obligations as the borrower. This lays out your repayment terms, interest rate, total balance, and other key details.
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Verification Forms In some cases your lender may send you post-closing verification forms asking about your employment income, assets, or other financial details. This is done to confirm the information used to approve your loan was accurate.
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Hello Letter from Servicer Your loan may be transferred to a new servicer who will then manage your payments and account You’ll get a welcome letter with their contact information and instructions for setting up your account
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Follow-Up Communications: Expect phone calls, emails, or letters from your lender or servicer in the weeks after closing to answer questions, review your payment setup, and ensure you understand the loan terms.
Why Lenders Follow Up After Closing
There are a few key reasons lenders follow up with borrowers post-closing:
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Confirm Application Details: Income and employment verifications help ensure the details used to qualify and approve borrowers were accurate at the time of closing.
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Account Setup: Lenders want to make sure you know where and how to make mortgage payments, set up autopay, manage escrow accounts, etc.
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Build Relationships: Follow-up contact allows lenders to continue assisting you, answer questions, and serve as an ongoing educational resource.
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Quality Control: Post-closing follow-up is part of lenders’ quality control process and helps them identify any issues or needed improvements.
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Transfer Servicing: If your loan is sold, the new servicer needs to introduce themselves and get your account set up properly.
Tips for New Borrowers After Closing
Here are some tips to ensure a smooth transition once you’ve closed on your mortgage:
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Carefully review all documents sent by your lender and servicer. Ask questions if anything is unclear.
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Set up autopay or automatic transfers for your monthly mortgage payment to avoid late fees.
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Make sure your lender has updated contact information if you move or change phone numbers.
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Know who to contact (lender or servicer) for questions about specific account issues.
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Save records of all communications, payments, and documents related to your mortgage.
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Open and respond to all mail from your lender in a timely manner. Post-closing verification forms often have deadlines.
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Contact your lender/servicer immediately if you have trouble making payments or experience financial hardship. They have options to help avoid default or foreclosure.
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Notify your lender/servicer if you refinance or pay off your mortgage early. Ask for a detailed payoff statement.
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Remember lenders follow up to help you, not harass you. Prompt cooperation leads to a smoother servicing process.
Common Post-Closing Communications Explained
Here are some of the most common lender messages that borrowers get after the closing and what they mean:
Notice of Servicing Transfer
If your servicer changes, you’ll get this notice indicating:
- Old and new servicer contacts
- Date your new servicer starts
Follow instructions to set up your new account. Keep paying your old servicer until the transfer takes effect.
Welcome Letter from New Servicer
This introduces your servicer and provides:
- Account and payment setup details
- Online account access
- Contact information
- Applicable fees and terms
Follow all steps to establish your account and payment method with the new servicer.
Monthly Mortgage Statements
Review these carefully each month. They show:
- Payment breakdown – principal, interest, escrow
- Fees assessed
- Payment history
- Current balance
- Ways to pay
Notify your servicer if you see any errors or have questions.
Yearly Escrow Analysis
This summarizes your escrow account transactions and shows any payment changes needed to cover property taxes and homeowner’s insurance over the next year.
1098 Mortgage Interest Statement
Important for tax prep, this yearly statement details:
- Interest paid
- Mortgage insurance premiums
- Points paid on loan
Keep this document for your tax records. Consult a tax pro with any questions.
Payoff Statements
If you pay off or refinance early, your lender must provide a payoff statement within 7 days of your request detailing the exact payoff amount needed. This changes daily with interest accruals. Have funds wired once you have the final figure to avoid any shortages.
Staying on top of post-closing communications is key to avoiding headaches. While lenders do follow up to provide support, you also need to hold up your end by reviewing documents, asking questions, making payments on time, and notifying your servicer of any changes. Maintaining open communication and prompt cooperation with your lender’s requests makes the post-closing and servicing process much smoother.
Frequently Asked Questions – Servicing Released
After your closing, the Closing Agent will send your signed loan documents to the Post Closing Department at Member First Mortgage, LLC (MFM). Your loan file will be reviewed to confirm that everything is returned, signed, initialed and notarized correctly. After the Post Closing review, your loan will soon be set up in a Servicing system, so it will be ready to go for your first mortgage payment. The signed Deed of Trust/Mortgage document(s) are typically filed at the County Recorder’s Office by the Closing Agent shortly after your closing.
Yes, your loan may be sold or transferred to a new Investor or Servicer. Selling your loan to another investor is normal and nothing to be alarmed about. This all occurs behind the scenes and does not change the terms of your mortgage.
Once your loan has been sold, you will receive a Welcome letter/packet from either MFM or the new Servicer, depending on the timing of that transfer.
- For those who haven’t received their welcome letter or package by the 10th of the month, MFM will email or mail it to you. Please make sure to check your email junk or spam folders.
- If your loan was transferred before the 10th of the month, you will get a “Goodbye” letter from MFM and a “Welcome” letter or packet from the new servicer at least 15 days before your first payment. There will be information about your new loan number, payment options, and other account information in the letter.
- If the transfer happens at the right time, MFM may send you a welcome letter first, and then a goodbye/welcome letter before you even make your first payment.
After you’ve owned the house for at least 30 days, your first mortgage payment is usually due on the first of the month.
- Let’s say you close on your mortgage on April 7. Your first payment is due on June 1. Following these steps is how most people make their first payment, but there may be times when this doesn’t work. You can always look over your closing papers and your “First Payment Letter” to find out when your first payment is due.
- From the first payment on, every month your mortgage payment is due on the first.
If you have a loan that has been transferred, please look at the Welcome Letter from your new servicer for payment information and instructions. If you haven’t heard that your loan has been transferred yet, please send your first payment to MFM.
- The first payment you send to MFM should have been sent to the new Servicer. We will send this payment to the new Servicer.
- MFM accepts payment by check, ACH, phone, or online.
- Check—At least the amount of your monthly payment must be written on the check. Please write your loan number on the check. MFM sends out monthly bills with a coupon attached to the bottom. Mail your check to: Member First Mortgage, LLC Dept. 771502 Detroit, MI 48277-1502 You may have to make extra principal payments if your loan terms allow it. Send a separate check to Member First Mortgage, LLC at 616 44th Street SE Grand Rapids, MI 49548. Write your loan number and “Principal Payment” on the memo line.
- Payments made automatically every month (ACH): Fill out the MFM ACH enrollment form in your Welcome Packet and email it to [email protected]. com. When you sign up for ACH, MFM will send you a confirmation letter with the date the payments will start. Until confirmation is received, you will make manual payments.
- Phone Payments (fees may apply): You can talk to our Member Service team or use the Automatic Phone Payment System to make your payment. When you call 1. 866. 636. 1052, keep the following handy: your loan number, ABA/Routing number, checking or savings account number, debit card number, and the amount you want to pay.
- Online Payments – To enroll, visit www. memberfirstmortgage. www.google.com, click on “My Account,” then “Register,” and fill out the form that comes up. After you finish the sign-up process, MFM will send you an email letting you know that you are now a member. You can then start using this service. To make a payment, go to “My Account,” log in, and follow the on-screen instructions.
If you have an escrow account, your monthly mortgage payment will consist of principal, interest, taxes and insurance (P.I.T.I). Using an escrow account, MFM will pay the taxes and insurance on your behalf each month.
- Tax bills and insurance premiums change all the time, so the amount you need for escrow is always changing as well. As your Servicer, MFM will check your escrow account once a year to make sure we’re not taking out too much or too little money. After this, we’ll let you know if your escrow account needs to be changed in any way. Based on the results of the analysis, your total tax and insurance payments may be changed.
- You will have to pay your own property taxes and insurance if you don’t have an escrow account.
Your new Servicer will prepare your 1098 tax statements each year. Your 1098 statements will be available online and a hard copy will be mailed to the address on file before the end of January, in accordance with IRS guidelines. If you made any payments to your account during the service with MFM, we will prepare a partial 1098 statement.
Yes! Every mortgage is unique to the borrower(s) so it’s impossible to consolidate everything into one list. However, some additional things to be aware of after closing are:
- Interest Rates: Interest rates rise and fall all the time. You might be able to refinance your mortgage if rates go down enough. Talk to your loan officer to find out if you can refinance.
- When you have a conventional loan and pay private mortgage insurance (PMI), you should keep an eye on your equity. You can ask about getting rid of PMI if you have at least 20% equity in your home and a conventional loan.
- Lots of Mail: Get ready for a lot of mail! Your loan will be public record as soon as you are officially listed as the property owner. Because of this, your mailbox will start to get full of offers from other mortgage companies, home products, and even scams. People did not sell your information, but the loan terms and conditions are now public information. Keep an eye out! If you have any doubts about the validity of a document, contact your Servicer.
If you have any additional questions, please contact MFM by email at [email protected] or by phone at 866-636-1052 during normal business hours 8:30am to 6:30pm EST, Monday through Friday.
How to Make a Payment – Servicing Released
Why is my lender asking for documents AFTER closing
FAQ
What do lenders do after closing?
The process after the closing, however, As we already said, many lenders will sell your loan to another bank so that they can service it. Occasionally, a lender will also service their loans, but most just finance these loans temporarily and sell them to a mortgage servicer post closing.
Can a loan fall through after closing?
Sadly, yes, that can happen. In many closing documents, there is a clause that says the lender can back out of the deal if anything changes that would make the loan less risky after it has been approved or closed.
What is the 3 day rule for closing?
The most noticeable thing about traditional mortgages is the three-business-day wait between getting your closing disclosure and the consummation date, which is also called your “closing day.” This rule of three business days was put in place in October 2015, and it applies to both new mortgages and refinancing.