What To Expect After Buying A House

You did it! As a homeowner, you are now going to be able to enjoy all the wonderful benefits of homeownership. You also just completed a transaction that the public has full knowledge of because the transaction was recorded via the County recorder.

Not to worry, the only information all that’s recorded is your name, address, purchase price square footage, tax basis, year home was built, first or second trust deed, sometimes the mortgage lender, sometimes the loan amount, and APN number which is the number assigned to your property by the county tax collector. None of your personal financial information is public knowledge. Nonetheless, be prepared to get an exorbitant amount of direct mail.

After buying a house, opt out of the junk mail.

We always recommend visiting www.optoutscreen.com. This website has a twofold benefit because it significantly reduces the amount of junk mail that you receive after buying a house and its reported to actually increase your credit score by five points. It only takes a few minutes to ensure a clutter free mailbox.

In the next 30 days you’re going to be receiving a letter from your mortgage company telling you that the mortgage payment is due to them or that they have sold your mortgage loan to a new bank. If it turns out your mortgage company sold your loan to a new mortgage bank, your first mortgage payment will likely be due to the new mortgage company.

*Home Buyer Tip: if more than two weeks have passed since you bought your house and you have not heard from the original mortgage lender, saying where the mortgage payment is due, call your mortgage lender asap. You want to make sure your first payment arrives on time moreover, which company will be servicing your loan. (By servicing we mean the mortgage company that will be collecting your monthly payments and applying those payments to your principal balance)

As a homeowner, your first mortgage payment will be due predicated on when you closed escrow on your house.

For example if you close on February 10, your first mortgage payment will not be due until April 1. Mortgage payments have a 15 day grace period. So while the mortgage is due on April 1 you don’t actually have to make the payment until April 15.

Here’s a general rule on when your mortgage payment is due after buying a house:

• Close of escrow 1st-15th, mortgage payment due on the first of the following month
• Close of escrow 15th-1st, mortgage payment due on the first of the next preceding month

The mortgage payment is actually due any day between the 1st and the 15th of the month.Put another way, the first 15 days of the month is a grace period. The mortgage payment is considered late on the 16th day of the month. If you make a house payment on April 16, it would be considered late. Another thing to be aware of-mortgage payments-mortgage interest is always in arrears. This means that your mortgage payment that’s due on April 1 is actually for the full month’s worth of interest for the month of March.

What if something happens and you make your mortgage payment late on the 16th or 17th of the month? Your mortgage company will charge you a late fee, but it is not reported to the credit reporting agencies until 30 days past due, so don’t be late.

The next big perk after buying a house is the fact your mortgage loan will make your credit score rise dramatically. You can expect to see your credit score rise upwards of 30 points or more in the first 60 days of making your mortgage payment. So while you are buying a house, an added benefit is indirectly purchasing a higher credit score.