Anybody who has acquired a home loan recently knows that just after closing you receive a ridiculous amount of paperwork in the mail. You receive everything from escrow notices...to documents from the county recorder’s office...to annoying marketing solicitations.
Below are some of the items you may receive with an explanation as to what we would do with them. This way you know what is important to keep in your files, versus what you can throw away in the trash.
Final Settlement Statement:
Your tax preparer will need this at tax time. Also, this mailing from escrow usually comes with a check (for any overage on the estimates before closing).
These are a must keep! Any official documents from the county such as recorded Grant Deeds, Re-Conveyance Notices, etc. should be filed away and kept indefinitely.
Deed of Trust:
This document transfers legal title of your home to a trustee, which holds it as security for the loan between you and the lender. Equitable title remains with you.
This is your promise in writing to payback your loan to the payee under the specific terms listed.
First Payment Letter:
Use this document for info regarding payment address, account numbers, etc. However, this info can change if your loan servicing is transferred. You will be notified by mail if this happens (see below).
Loan Servicing Notice:
This notice is important as it provides you with information about your loan servicer. Use this to help setup your online account, setup auto-withdrawals, contact customer support, etc.
Preliminary Title Report:
Your home loan includes title insurance which protects you in the event of a title dispute. Keep this document in case you need it for future reference. The title company’s contact info is key.
These break down the allocation of principal and interest in each payment, which can help you see the effects of making extra payments.
Appraisals aren’t necessarily accurate indicators of what price a home would sell. Visit our website at http://www.chadpeshke.com and search “The Truth About Home Appraisals” to learn more.
Your credit report is a major factor in lending decisions. Let us know if you have questions about your specific credit report.
Mortgage Insurance (Life Insurance) Solicitations:
You are better off obtaining life insurance from a professional who can educate you on the options that best suit your needs. Acquiring a generic policy based solely on your loan amount would not be prudent and will generally require higher premiums. Contact us for more information on your life insurance needs as it pertains to your mortgage.
Homestead Exemption Solicitations:
These solicitations are another example of marketers trying to get you to pay for things you don’t need, or for things you can very easily do on your own. If applicable, the county will mail you Homestead Exemption paperwork. Just follow the simple instructions to complete this on your own at no cost. If you have questions, just contact us!
DID YOU KNOW:
After we help you acquire a home loan, we mail you a “Closing Folder” that provides the important documents printed out in a nice organized binder. This binder also includes a DVD of every document so you have an electronic version as well.
We’re here to help make your life easier!