Closing tools sales for mortgage

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hey there today's the last part of our three-part mortgage process video series and we're going to finish up today talking about the magic three words of clear to close the actual closing day and what happens after you close so if you remembered in our last video we talked about the underwriting process where you wait for the appraisal you wait for the title company and you've got documents and communication going back and forth between you and your lender it's a long process it can be stressful but at the end of the day all of that hard work results in three magic words clear to close those three words are probably some of the most exciting from The Lending side because that means we have a final approval from our Underwriters and we can now move forward with the closing sometimes this happens a couple weeks before closing sometimes it happens right before closing and it seems really really stressful at that point but once we get that clear to close everything is good to go so with the clear to close in place the title company and your lender will have balanced their numbers together to make sure everything matches up with taxes and insurance and who's paying what so then you the buyer are able to properly wire the amount of money that is needed for the cash to close you will have probably seen something that's pretty close to this typically seven to ten days away from closing all the way up until three days before your closing called the pre-cd or pre-closing disclosure these numbers are going to be pretty close to your final numbers but may not be completely finalized yet and you'll want to confirm with the title company what those funds are going to be how much you need to wire or how much of a cashier's check you need to bring the other thing that you need to look forward to is that actual closing day so you'll want to also talk to your title company about when that's going to be and verify the location as well as get instructions for what and how to money or how to wire the money there now finally after 30 45 maybe sometimes even 60 days you have finally made it all the hard work is about to pay off and you are at the title company for the closing day and this is a joyous day because once you have signed what seems like a bajillion papers you finally get the keys to your brand new house and you are now a verifiable homeowner congratulations to you you have done it you have finished the race but we're not quite done yet right it seems like a big deal you have finally purchased that home and we all get to celebrate and we celebrate with you your title company celebrates with you and your realtor celebrates with you but there are some things that we need to know after the closing date what happens next like so we I one of the questions I get a lot is where do I make my first mortgage payment within those documents that stack of papers that you got from the title company on your closing day you would have gotten something called a payment coupon typically it looks just like a little little check that has information on where to make your first and possibly your second mortgage payment depending on your lender some lenders will service the loan themselves which means you will continue to make the payment for your loan until you sell the house or that loan is paid off to the lender directly other lenders will sell your mortgage to an investor during that process right before that loan gets sold to the investor you're going to get what's called a goodbye letter from their current lender and that's going to have information on where your loan is being sold to and where to make your next payment the next thing you'll get is a hello letter from the new servicer that new servicer is going to tell you where to make your payments and it's at that time that you will set up automatic payments if your loan is being sold and you'll want to make sure with your lender if that's something that is commonly done or if they service their own loans either way is fine there's not really one advantage to another on whether or not they actually sell them some people get really hung up on whether or not A lender keeps the loans themselves but there really doesn't end up being that much of a difference with only the only issue that you really see is when something is when the loan is getting transferred from one servicer to the other but at the end of the day once that gets taken care of it's not a big deal what's important for you as the buyers you need to make sure you know who that servicer is so you know where to make the payments some other things that I get questions about is what about insurance so Insurance gets paid at closing you're covered for an entire year whether that's just homeowners insurance or you have homeowners and flood insurance that gets paid a year in advance come next year you will receive a new bill for your insurance and if you escrow your insurance payment your insurance is being paid through your mortgage and you're going into an account every single month and by the end of the year you will have enough money in that account and your mortgage company or your servicer will pay for that insurance and so you don't really have to worry about it at all you just want to make sure you're aware of how much that insurance is now take it from experience you are able to shop for insurance so if you feel like your insurance rate is a little high or you have made updates like you've put in a new roof your water heater has changed maybe you've changed out the electrical panel you can have an inspection on the new roof and the other updates that you've made and you might be able to get some cheaper Insurance because you have made those updates and then that would actually bring your mortgage payment down some other things to keep in mind is when do you make your first payment well if you closed on like say the 15th of the month your next mortgage payment will not be due on the first of the following month but it will be paid the month after that so let's say we're in the month of October and you closed on October 15th your mortgage payment is going to be due December 1st not November 1st so you get a little bit of a month break which is a really nice thing it allows you to kind of get ahead because you just made a giant purchase and sometimes you might have actually drained your savings account so it gives you a chance to kind of recoup some of that money make a little bit of money save that up for the next time you make your mortgage payment so those are some important things to keep in mind follow me for more videos more tips as we look at some other parts of the mortgage process we just spent three videos talking about these things and if you have questions drop a comment below if you enjoyed this video give a like subscribe and I'll be putting out more videos in the weeks to come about some information about mortgages thanks for watching