In some cases, loan servicing can be transferred right after closing-even before a payment is made. This transfer could take place at any time during the life of your loan. The only change as a result of this transfer will be where you send your monthly mortgage payment. Your loan amount, interest rate, contractual payment obligation and payment schedule will remain the same. This transaction will not impact your initial mortgage agreement in any way. For the borrower, all this means is a new institution will be collecting your payments, handling your escrow accounts, dealing with any insurance or tax matters, and answering your questions. ![]() When your lender transfers servicing, they hand over the management of your loan to a new mortgage or servicing company. While it may not be cause for concern, it’s important for you to understand your rights as a borrower and what to expect during (and after) the transfer. In fact, it’s quite common in the mortgage industry for loan servicing to be transferred from your initial lender to another company. Transfer of loan servicing is no reason to panic. ![]() In this post, the final segment of our Explaining the Home Loan Process series, we’ll cover loan servicing transfer. Loans are commonly transferred to other companies for servicing-sometimes even before the first payment is made! ![]() However, borrowers often don’t realize that mortgage closing isn’t the end of the home loan process. You have completed every step of the mortgage process: from the application to underwriting to closing, you have secured your home loan and made the purchase you’ve been waiting for.
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