Those looking for a home will encounter a number of important people along the way. From real estate agents to lenders and more, things can get confusing for buyers overwhelmed by all the players. The financing arm of your home purchase is important and the decisions you place in your mortgage servicer's hands will have long-lasting effects on you. Read on and find out more about your mortgage servicer.
While many people refer to these professionals as lenders, they do so much more than just lend money to those hoping to buy a home. for those trying to obtain financing, though, it's all about the lending part of the process. Lenders can come in several types. Many lenders are banks, but they can also exist solely to provide loans or just mortgage loans.
Not to be confused with lenders or loan servicers are loan guarantors. These government entities don't provide any money to a borrower, but they do make a guarantee to the lender to cover the loan if the borrower defaults.
What Can I Expect?
In some cases, you will be working with a lender while your loan is in underwriting. However, once that loan is approved and you close on the home, the lender will step aside, and the servicer will step in. It's also very common for buyers to work with a lender that is also a mortgage servicer. However it may occur, borrowers will know from the start what could happen once the closing occurs.
It's also important to understand that lenders usually have the right to sell your loan to another mortgage loan servicer. You must be informed of the change, and you should not notice any difference in the way your loan is serviced except perhaps the name of the company, the website, and a different mailing address for your payments.
What Do They Do?
Once you are moved into your home and begin making payments, here is what you can expect from your mortgage loan servicer:
Speak with a local lender or credit union like Together Credit Union if you have questions.