After you’ve signed all the paperwork and settled into your new home, you may be surprised to receive a letter notifying you that your loan has been transferred to a different loan servicer. Rest assured, this is a completely normal and common practice in the mortgage industry. In fact, it’s not unusual for a loan to be transferred multiple times over the life of the loan! Here’s what you need to know about why your loan might be transferred and how it may impacts you.
How Could This Impact Me?
One of the biggest concerns homeowners have when they hear their mortgage has been sold is whether it will change the terms of One of the biggest concerns homeowners have when they hear their loan has been transferred is whether it will change the terms of their loan agreement. The good news is, it won’t!
Here’s what stays the same:
- Your Loan Terms: The transfer of your loan does not affect your loan terms. You’ll continue paying your monthly payments at the same intervals.
- Your Rights: As the borrower, your rights and protections under the original loan contract remain intact. The new loan servicer will honor the terms and conditions of your original loan agreement.
One thing that may change is who you make your payments to. When your loan is transferred, you’ll be informed of the new loan servicer that will handle the servicing of your loan, meaning they’ll collect your payments and manage the day-to-day administration of the loan. You should contact your new loan servicer with any questions or concerns you may have after your loan has been transferred.
What Should I Do if My Mortgage Is Transferred?
If your mortgage is transferred, you’ll receive a notification from both your current servicer and the new one. This letter will contain important information, including the name of your new loan servicer, instructions on how to set up your payments and the date you’ll need to start sending payments to them. Here are a few steps to take when you receive the notification:
- Update or Determine Your Payment Information: Some loan servicers may have requirements or restrictions regarding methods of payment including online bill pay and autopayments. You should always check with your new loan servicer before updating any payment information and method or to determine payment options available.
- Verify Everything: Double-check the legitimacy of the letters you receive. Unfortunately, scammers sometimes use this as an opportunity to trick unsuspecting homeowners. If you’re unsure about a letter received, reach out to your current loan servicer directly for confirmation or information.
- Keep Records: Keep copies of any communications you receive regarding the transfer of your loan. This includes your original loan paperwork, payment records, and the letters notifying you of the transfer.
At the end of the day, while it may seem like a big deal, the sale of your mortgage is a routine part of homeownership and won’t impact the terms you worked hard to secure. You’ll continue enjoying your new home, just with a different servicer name at the top of your statement!
Interested in learning more about your mortgage options or how we can help guide you through the homebuying process? Visit Pulte Mortgage today!
