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Done Paying Off Your Mortgage? Now What?

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If you’re like most homeowners, then there is a high chance that you acquired your home through mortgage financing. You’ve been through the mortgage application process, and all that is left is to pay off your lender. But what happens when you’re able to submit your last mortgage payment?

It is every homeowner’s dream to finally be able to claim the house you acquired by applying for one of the Mortgage Loans Dallas as your own. While the exact payoff process varies from one state, lender and mortgage type to another, the following money moves are what you need to remember after paying off your home loan.

Watch Out For the Documents Your Lender Will Be Sending You

After paying off your home loan, your lender will send you several documents related to your mortgage. One of these is the “satisfaction of mortgage” statement. This document will act as your proof that you’re able to pay off your lender with every bit of your mortgage. Lenders will usually take at least three weeks to issue the “satisfaction of mortgage” statement and send it to your mail.

Talk To Your Lender If You Plan One Paying Them Back Early

Different lenders have rules that they follow when it comes to retiring mortgages prematurely. Some will have you pay a fee to process the payoff statement while others will ask you to send your payments to a different office. Make sure to ask your lender of their policy for early mortgage pay off. You don’t want to risk yourself from having to pay for prepayment penalties which can add up to your mortgage bill.

Good Read: 4 times paying off your mortgage early, could actually cost you extra

Cancel Arranged Payments, If Any

If you arranged your mortgage payments to be automatically deducted from your bank account, make sure to cancel it after your last payment. This way, you can be sure that you won’t be paying your lender more than the required amount. This will also save you time instead of having to file for a reimbursement due to excess payments made.

Get The Deed To Your House

Some lenders will send the certificate of satisfaction to the recorder’s office notifying them that you are now the sole owner of your home. The city or country office will then update their records and release your deed showing you’re now the sole proprietor of your house. However, there are instances when you will need to file the certificate of satisfaction if your lender sends it to you instead. Make sure to verify this and to get your deed.

Pay For Your Property Taxes And Homeowner’s Insurance

For homeowners who have an escrow arrangement, you already paid your mortgage company an extra fee for your property taxes and home insurance. Now that you paid your home loan off, it is your responsibility to pay for these on your own. Contact your taxing authority as well as your homeowner’s insurance company and tell them to send your bills directly to your address as you’ll be the one paying for these from now on.

Update Your Home Insurance Company

You won’t only need to pay your home insurance by yourself now that you’re done paying your mortgage. You also need to update your current home insurance policy to make sure it covers your home insurance needs. Also, it won’t hurt to ask for a discount. If you want to find another company which offers better home insurance deals, feel free to shop around.

Good Read: 10 Reasons to Buy Homeowners Insurance

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