Starting and completing a mortgage with any company can generate mountains of paperwork, emails, letters and even spam. Although getting a mortgage is complicated, the more you understand, the less stressful it will be. On this page we provide information on what happens to your loan after closing, and answers to frequently asked questions.
Words To Know:
Servicer: A company to which some borrower pays their mortgage loan payments to. They also perform other services in connection with mortgages, like paying property taxes and homeowners insurance if the customer has them escrowed.
Goodbye Letter: A letter received from your lender letting you know that your loan has been transferred to another servicer.
Welcome Letter: A letter received from your new servicer letting you know how to make payments moving forward.
Escrow: An account set up by your mortgage company, to pay certain property related expenses; normally property taxes and insurance.
Loan Transfer: The reassignment of an existing mortgage, to another entity.
Loan Payment Coupon: A perforated section at the bottom of your statement to use when you mail in your payment.
Mortgagee Clause: An agreement between a mortgage lender and a property insurance provider. As a provision in a borrower’s property insurance policy, the clause stipulates that, in the event of loss or damage to the property, the insurance company would make payments to the mortgagee. Therefore, if you obtain a mortgage to buy a property and that property is then destroyed in a fire, the mortgagee clause would ensure that the loss would be payable to your lender even though it’s part of your insurance policy.
Santa Clause: A seemingly nice man that sneaks down your chimney on Christmas with good intentions.
My Loan Just Closed, What’s Next?
Congratulations, you have purchased or refinanced your loan! Within 15-20 days from your closing, you will receive a letter in the mail from Neighborhood Loans (our fancy legal name) informing you of who your loan servicer will be going forward.
Although ALL borrowers make their FIRST payment to Neighborhood Loans, this letter will instruct you on where to make future payments. For borrowers whose loans have been transferred to a new servicer, they should also expect to receive a “Welcome Letter” from your new servicer.
I'm having trouble making payments. What are my options?
When Is My First Payment Due?
Please refer to your closing documents, as they will indicate when your first payment is due. If you are having trouble locating the exact date, feel free to reach out to firstname.lastname@example.org for a prompt reply within 1 business day. Here is an example of a payment coupon that can be found inside your closing documents.
Who Do I Contact With Questions?
For questions regarding your mortgage after closing, or your 1st payment, please reach out to your Loan Officer or loan team! Or send a detailed email to email@example.com for a response within 1-2 business days.
Who Do I Make My First Payment To?
Your first payment will be made to Neighborhood Loans— Neighborhood Loans, Inc. PO Box 772501 Detroit, MI 48277
Please refer to your closing packet, provided to you at closing, for your payment coupons/instructions on how to complete this.
For questions regarding your mortgage after closing or your first payment, you may reach out to your Loan Officer or loan team! You may also email firstname.lastname@example.org for a response within 1-2 business days.
How Do I Know If My Loan Was Transferred?
Loan transfers are common and nothing to be concerned about. You will send your payments to the new loan servicer, but Treadstone is your lender for life and is always here to assist you! If your loan is transferred to another lender, you will receive a “Goodbye Letter” from Neighborhood Loans. This letter will break down to whom and how you will make your future loan payments.
Whom Should I Be Answering Mail From?
Correspondence from Neighborhood Loans is important and should not be ignored. But how do you know if it’s legit? Some common indicators include not having all your specific loan details available, small print which states that it is a different company, or an asterisk around information (*).
Which Mail Is Legit?
When you get a mortgage, certain details of your transaction become public record and, as such, many borrowers get bombarded with spam before and after closing. Some of these letters may even say “Neighborhood Loans” or “Treadstone Funding.” To check if the letter is really from the company it says it’s from, you can look up the NMLS number listed (all mortgage solicitations and marketing must include an NMLS number). You can look up a company NMLS number on the NMLS Consumer Access site. You can also call your Treadstone Loan Officer directly anytime you have a question. Even though your loan may have been sold, we are still here to assist you with future loans, and even refinancing your current loan.
Why Did I Get A Property Tax Bill In The Mail, If It's Included In My Mortgage Payment?
If you escrowed your taxes and/or insurance into your loan payment, then you should be all set as your servicer will be making the payments for you. The property tax statement should also state, “this is not a bill” at the top; is it sent to you for your information.
If you have any further questions, do not hesitate to reach out to your Loan Officer.