STEP #11 Meeting your Financial Obligations as Homeowner

After buying the home the days go so fast in the moving excitements that it is almost a time to make first mortgage payment. Failing to make your mortgage payments on time within 30 days can even lead to very serious consequences. A good way to prevent late payments is to have the mortgage payment automatically deducted from your bank account every month. Contact your lender to setup automatic payment withdrawal.

Here are quick tips to help you stay organized towards your financial obligations.

TIP#1: First Payment Coupon

You should have received a first payment coupon for your first mortgage payment at closing. Do not be surprised if you receive a letter from the lender telling you that the loan has been sold. This is a very common practice. The lender will tell you where to mail your payments if your loan was sold, and you should receive a coupon booklet in the mail from the new lender, which is now your loan servicer. Even if you don’t receive a payment coupon, you need to make your payments on time. Contact the loan servicer for payment information.

TIP #2: Yearly Escrow Analysis

Every year  the loan servicer will provide you  a year-end interest statement and escrow analysis which shows the activity of total interest, hazard ins and property taxes have paid for the full year. Your payment may increase in the future if there is a shortage in your escrow account or you will refund if there is overage in your escrow account.

TIP#3: Maintaining Good Credit

Another aspect to your new financial responsibilities is maintaining good credit. Buying a house is the biggest investment so does missing one payment will have big effect on your credit. Therefore you should always make your mortgage payment on time. If you fall behind on  more than 3 payments , the lender has the legal right to foreclose on the house.

TIP#4: Behind on Mortgage

If you do fall behind in your mortgage payments or face  a financial hardship beyond your control, notify your loan servicer immediately. Always stay in touch with your servicer and try to make arrangements for repayment.