Post-closing tips for refinances
Here are some tips on what you should do after your refinance closing is over:
Save your closing documents
Remember when all everybody talked about was reducing paper and going green? Well, the mortgage and real estate industries never received that memo.
At closing, you will be provided with a set of copies of everything that you just signed, and that package could number up to 100 sheets of paper. Hold on to them; you might need a copy of your Closing Disclosure Form for tax purposes, and you never know when you might want to review the Note and loan terms.
If you prefer not to have to find room for another stack of documents, or if you really are concerned about doing something good for the environment, at Federal Title we can scan your closing package and email it to you.
By saving your closing documents on your computer, you won’t have to worry about the wasted paper, finding a place to keep the stack of pages or losing confidential documents. We will always maintain an electronic copy of the file here at our offices as well.
Save your closing documents from the prior transaction(s)
This may sound disappointing, since most clients would likely enjoy burning their prior closing package, but even though the prior loan is being replaced by the new loan, you should hold on to the prior papers as well. One day, you, your estate or your heirs will end up selling that house. You might have to prove that a prior loan was paid off, or that you have a title insurance policy, or you might need to confirm the prior sales price, etc. Having your prior loan documents could save you a lot of time and some future headaches.
Cancel any automatic payments that are set up for the prior loan.
Even if your next auto payment is scheduled for April 1 and your closing is March 10, and your current mortgage will be paid off well before the next payment due date, it is a good idea to make sure that any automatic payments are cancelled. Of course the prior lender would owe the money back if they took another payment, but nobody wants to have to chase money from a bank.
If you signed up for automatic payments on the new loan, make sure that the first payment is made.
Double check to make sure that the new loan payment has been properly processed.
If your taxes are being escrowed, make sure the lender pays the bill
It is especially important to check the first tax bill after your refinance. Typically, you can view escrow payments on the mortgage lender’s website or you can call the mortgage lender’s automated number.