After Moving In – What You Need to Know
How to make your monthly loan payments
Within a few days of the closing and the receipt of your loan, you will receive a letter from your lender with monthly payment instructions and an explanation of your responsibilities as a borrower.
- Send your payment so that it arrives on or before the first of each month.
- Never send cash in the mail.
- Write down your account number on your check or money order.
What your monthly payment includes
Your monthly payment includes the principal payment, interest, and private mortgage insurance (PMJ), if required. In the majority of cases, your monthly payment will also include federal (property) taxes and liability (homeowners) insurance so that you do not have to worry about making these payments on time.
What to do if you have problems making your payment
The first thing that you should do is call the lender. Representatives are there to listen to you and to try to help however possible. But remember, it is very important to make your payments on time and for exactly the amount due, if you want to protect your credit. And if in the future you decide to buy another home, a good credit history will be very useful.
What to do if your home is damaged
If your home is damaged by a fire or by some other occurrence that is covered in your insurance policy, call your insurance agent and fill out a claim immediately. A claims adjuster will do an inspection of the property to determine the cash value of the damages. Once this has occurred, the insurance company will make out a check, jointly issued to you and to the lender. Call the lender’s claims department to ask about the proper procedure for funds distribution.
Your other obligations as a borrower
Your loan or deed of trust requires that you maintain your property in a good state. This requirement exists to protect your investment and to increase the value of your property, if you decide to sell it one day. When you make any repairs or improvements, make sure to always use licensed contractors.
When you buy a home, be prepared for certain additional costs that all homeowners have, such as monthly mortgage payments, annual property tax payments, homeowner’s insurance, electricity, gas, trash collection, water and sewer service, home maintenance and gardening.