So You’ve Closed on a Home
Congratulations on your new home! Closing on a house is a major milestone, but what comes next? Many new homeowners are surprised by the financial and administrative responsibilities that follow. At Avanti Way Financial, we’re here to guide you through what to expect after closing so you can settle in with confidence.
Understanding Your First Mortgage Payment
Your first mortgage payment won’t be due right away. Since interest is prepaid at closing, your first payment date could be up to 60 days after closing. Be sure to check your closing documents and welcome letter for your exact due date and grace period.
If you opt for biweekly payments, you’ll split your monthly payment into two, making payments every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments—or 13 full payments annually—helping you pay down your loan faster and save on interest. If you’re switching to biweekly payments after closing, keep in mind that you’ll need to be a month ahead on payments.
To ensure timely payments, consider setting up autopay through your lender. If your loan is serviced by Avanti Way Financial, our team will provide instructions on setting up payments and managing escrow adjustments.
Escrow Account Management
If your loan includes an escrow account, it will handle property taxes, homeowners insurance, and, if applicable, mortgage insurance. Instead of paying these costs in lump sums, your lender will collect a portion each month as part of your mortgage payment.
Lenders conduct an annual escrow analysis to ensure the right amount is being collected. If your property taxes or insurance premiums increase, you may have an escrow shortage, requiring a higher monthly payment or a lump-sum adjustment. If costs decrease, you may receive an escrow refund check. Be proactive by applying for homestead exemptions where available, as they can help reduce your taxable home value and, in turn, your escrow costs.
Managing Third-Party Mail and Mortgage Servicing
After closing, expect an influx of mail from lenders, insurance providers, and third-party companies. Some will be legitimate, such as investor letters notifying you if your loan is sold to Fannie Mae, Freddie Mac, or another mortgage investor. However, be cautious of misleading mailers offering services like home warranties or mortgage life insurance. If you ever have questions about a document, contact your lender directly.
Staying on Top of Your Mortgage and Financial Goals
At Avanti Way Financial, we’re committed to supporting you beyond your closing date. We offer periodic mortgage reviews to help you determine whether refinancing could lower your interest rate, reduce your monthly payment, or unlock home equity for renovations or debt consolidation.
Additionally, keeping track of your credit score and making timely mortgage payments will help you maintain financial health. If your financial situation improves, you may qualify for refinancing opportunities that could save you thousands over the life of your loan.
Homeownership is a journey, and we’re here to help you navigate every step. Whether you have questions about your payments, escrow, or refinancing opportunities, our team is ready to assist. Reach out to Avanti Way Financial today to make the most of your mortgage and secure your financial future!
