After closing a home loan and completing the home loan process with the best mortgage lender in Dallas (#humble) there are still some “to do” items that can save time and money. Knowing what to do after closing on a house will set you up to for success.
The Mortgage Mark Team has compiled a helpful list since we want to be your top recommended mortgage broker in Dallas. Our recommendation is to set appointments with yourself on your calendar (like Outlook, Google Calendar, etc.) and include this page’s URL as a reference.
Think of this page as your home loan closure checklist.
Mortgage Loan Process Outline
Click here for an overview on each step.
- Loan Packaging & Lender’s Disclosures (1-2 days)
- Loan Setup (2-3 days)
- Processing / Credit Approval (2-3 days)
- Initial Underwriting Approval (2-3 days)
- Sign the Initial Closing Disclosure (CD) (Immediate)
- Final Underwriting Approval (1-2 days)
- Docs to Title / Final CD Issued (1-2 days)
- Closing & Funding (TBD)
- After Closing <– YOU ARE HERE
Junk Mail (R)
For the next three months the junk mail will be plentiful. After closing on a home loan the title company files the deed with the county. This is public information. Once that happens a slew of solicitors will inundate the homeowner with all kinds of junk mail.
Please know that this is not us despite the fact that some of the letters will use our company name.
Most of the junk mail appears to be junk; however, there are some sneaky solicitations that appear legitimate. Please contact us if you have any doubts about what’s legitimate. Ultimately know this: you’re done paying money with the exception of your mortgage payment and your HOA dues. You may ignore the demands to pay for: filing your deed, filing a homestead exemption, or getting mortgage life insurance.
Texas is a non-disclosure state which means many of the purchase details are not public information. Therefore, after closing a home loan, when the county requests specifics regarding the purchase price and financing details, know that you are not obligated to provide that information.
One could argue that the information should not be provided in the event you want to contest your property value for tax values down the road to save money on property taxes.
The Next 30-60 Days Following Your Home Loan Closure
The following items are things you need to do (or watch for) over the next 30 to 60 days after closing a home loan. The most noteworthy is watching for that first payment letter that provides details on how to make your first payment.
The other is that you don’t need to pay anyone any money (other than your mortgage payment to your mortgage servicer). So don’t pay anyone to file your deed, file your homestead, etc.
FYI, you don’t need to tell the county what you paid for the home… because they will ask. Texas is a non-disclosure state.
Our recommendation for the items below is to set an appointment with yourself after closing a home on your calendar (like Outlook, Google Calendar, etc.) and include this page’s URL as a reference.
- File homestead exemption (if primary residence) – in January
- Get various income tax deductions – March or April (or whenever you do taxes) (R)
- Watch For An escrow analysis (if you escrow) – around February or March (R)
- Know that property taxes increase after construction so watch for this when your mortgage company conducts your escrow analysis and rebalance
- Contest property value for tax purposes – do annually in April (R)
- Get Pro-Rated Taxes From Seller – in January (or once your taxes are paid
Future – Down the Road After Closing
In conclusion, the items below are often overlooked because there’s no definitive timeline for these. We recommend setting an annual reminder on the anniversary of your closing for these items.
- Do a mortgage recast to reduce the payment (if you want) (R)
- Setup Bi-Weekly Payments (if you want) (R)
- Cancel Mortgage Insurance (MI) (if applicable) (R)
Home Loan Closure FAQs in Texas
What should I do after closing on a house?
After closing on a house, there are several important steps you should take:
- Keep copies of all closing documents: Safely store copies of the closing documents, including the settlement statement, promissory note, deed of trust, and any other relevant paperwork. After closing on a house, you may not need these copies immediately, but in due time they will be useful.
- Review your mortgage terms: Familiarize yourself with the terms of your mortgage loan, including the interest rate, repayment schedule, and any special conditions or provisions.
- Establish homeowners insurance: Obtain a homeowners insurance policy to protect your property and comply with lender requirements. Ensure the policy provides adequate coverage.
- Transfer utilities: Arrange for the transfer of utilities, such as electricity, water, and gas, into your name. This will ensure you have uninterrupted service.
- Update your address: Notify relevant parties about your change of address, including the post office, banks, credit card companies, and any other entities that require your current contact information.
What not to do after closing on a house:
While it’s important to take certain actions after closing on a house, there are also things you should avoid. Things you definitely don’t want to do include:
- Opening new lines of credit so you don’t negatively affect your credit score
- Quitting your job, so you can keep up with your mortgage payments
- Neglecting to update your insurance
- Skipping mortgage payments.
You’ll also not want to give any money to solicitors trying to scam you through junk mail. Always look into anything related to an unknown party and your new home before making any financial decisions.
Can a lender cancel a loan after closing?
In general, a lender cannot cancel a loan after closing unless there are specific circumstances outlined in the loan agreement or if fraud or misrepresentation is discovered.
Once the loan has been closed and funded, the lender has typically committed the funds and established the mortgage lien on the property. However, it’s important to carefully review your loan agreement and consult with legal counsel if you have concerns or specific questions about your loan.
What happens when you close on a loan?
Closing on a house, also known as the settlement, is the final step in the home-buying process. During the closing, the following key events typically occur:
- Signing of documents: Both the buyer and seller (or their representatives) sign the necessary legal documents, including the mortgage note, deed of trust, and various disclosure forms.
- Payment of closing costs: The buyer pays the closing costs, which may include fees for the loan origination, title search and insurance, attorney services, and other associated expenses.
- Transfer of funds and ownership: The buyer provides the funds required to complete the purchase, usually in the form of a cashier’s check or wire transfer. Once the funds are received, the seller transfers ownership of the property to the buyer.
- Recording the deed: The deed, which establishes the buyer’s ownership rights, is recorded in the county records office to make the transaction official.
Loan Officer, NMLS # 729612