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717-431-9299
Now That You Have Purchased A Home
Here some things you want to be aware of and take action on:
Your mortgage and deed have been recorded in the County courthouse and this is
public information. Many companies search this information every month and use it to solicit you for a variety of goods and services. You will probably start receiving a fair amount of enticing
junk mail
offering everything from various types of insurances to mortgage acceleration, bi-weekly payment plans and much more. Toss it all out. If you have any interest in any of it, call me and let’s discuss. (see next item)
Life Insurance
You do want to talk with your
life insurance professional, immediately. More than likely, you have increased your “indebtedness” with this new mortgage which means there is a need for more life insurance, depending on your family situation. Term and whole life insurance policies have pros and cons so make sure you are talking with a professional. If you hear “I don’t believe in term or I don’t believe in whole life,” you are talking to the wrong person. Call me and I’ll recommend a professional that can help you weigh the pros and cons of each. This is a primary concern and should be addressed immediately.
Store important documents in an “evacuation box”
Gather and make copies of all your key financial and personal documents, including passports and birth certificates, marriage licenses, wills, property deeds, insurance policies, mortgage records, car titles, and stock and bond certificates. Make copies of the front and back of all credit cards and driver licenses. Then make a list of all your account and credit card numbers, as well as a written and photographic inventory of all your valuables. Also, prepare an envelope with enough cash or travelers checks to last your family about three days. These documents should be stored in a bank safe-deposit box or in a waterproof, and fireproof safe or container that can be easily taken with you in an emergency evacuation. Tell a close family member where this information is kept.
Change your locks
Unless you are buying a brand new home, who knows how many keys are in the hands of others that can still open the doors to your home. This may help with your insurance rates if the primary doors to your home do not have dead bolts. You can find supplies at a do-it-yourselfer style store or call a local lock-smith.
Prepare for the unexpected
Now that you own a home, it’s even more important to protect your family, your credit and your financial health. If you don’t already, start a new savings account and build it up until you have at least three full months of funds available to cover ALL living costs. That includes the mortgage, car payments, regular bills and food. Better to have and not need than to need and not have. This is a primary step in our “Guide to Financial Health.”
Financial Planning
Financial Planning and Financial Planners are NOT just for the rich and famous anymore. Financial planning is another integral part of our “Guide to Financial Health.” A good Financial Planner will help you see the big picture and help you to plan for your financial future. It’s not enough to just put money into a 401K and count on social security for retirement anymore. Odds are you are going to live a longer, more productive life which is going to cost more money. The sooner you get started, the better the results. Small steady investments are MUCH better than nothing at all. Once again, call me as we work with several of the very best Financial Planners in the area and can introduce you to one that will be a good match for you. There are no costs for consultations with the planners I work with.
You need a will
Especially if you are not the only person living in your home. A will can be quite simple and inexpensive to put together and can save somebody a ton of money, headaches and future legal fees by getting this taken care of. Living wills, powers of attorney, trusts and such can also be discussed. I highly recommend this be completed within 30-60 days of your closing.
While some of these steps may require some money, there are ways to keep your costs to a minimum, yet still protect yourself and family properly.
We’re here as a resource for you, your financial well being and your home needs. We also know some of the most cost-effective professionals in the area, from handyman Contractors to Remodelers to Electricians to Attorneys, Financial Planners and more… check out some of these
resources.
After closing payment information
Loan servicing by FairwayNEXT provides convenient ways to obtain valuable information about your mortgage loan, such as where to make your first payment as well as who your current servicer is, and, if necessary, you can make a one-time ACH payment! FairwayNext is a unique feature that our customers love and is available to you shortly after your home settlement.
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Who Are We?
At Fairway Independent Mortgage Corporation, customer service is a way of life. We are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted advisor, providing highly personalized service and helping you through every step of the loan process – from application to closing and beyond. It’s all designed to exceed expectations, provide satisfaction and earn trust.
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What is a servicing transfer and how does it affect my loan?
Watch VideoMany activities must occur during the life of a mortgage loan such as the application of monthly mortgage payments received from customers. Other activities may include the payment of taxes and insurance premiums from customer escrow accounts, customer service support, performing payment adjustments on adjustable-rate mortgage loans, providing assistance with payment options during difficult times and many other activities. Collectively, these are mortgage-servicing activities performed by your mortgage servicer.
From time to time, mortgage loans transfer from one mortgage servicer to another. When that occurs, you will receive a Notice of Servicing Transfer from your current servicer prior to the transfer of your servicing as well as a similar notice from your new servicer after the transfer or the notices may be combined into a single notice of servicing transfer sent prior to the servicing transfer date.
The Notice of Servicing Transfer letter relating to your new servicer is mailed to you in a Fairway green envelope. If you do not receive this information, please feel free to email us at servicing@fairwaymc.com or call our Customer Experience Department toll-free at (800) 201-7544, Monday–Friday from 8:30 a.m. to 5:00 p.m. Central Time. We will be happy to send a copy of your transfer notice.
In addition to the servicing of your mortgage loan, the ownership of your mortgage may change as well. The owner of your mortgage loan (which is referred to as an “investor” or a “government sponsored entity” or “GSE”) provides a framework of requirements regarding your mortgage loan, including options available if you encounter difficulties in making your monthly payments. When the ownership of your mortgage loan changes, you will receive a letter providing this information. Often, this is a letter sent by either Fannie Mae or Freddie Mac.
A transfer of servicing does not change any terms of your mortgage loan. It only changes who is performing servicing activities to support your mortgage loan.
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What can I expect after my loan closes?
Look for the Green Envelope!
Remember to watch for the Transfer of Servicing notice from Fairway in your mail. You can’t miss it - look for the bright Fairway green envelope!
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Where do I make my first payment?
If your first payment is due to Fairway, please mail your first payment to the address highlighted in this section or call our Concierge Department to make a payment via phone free of charge.
Once your loan transfers to your new servicer you may have options to set up online payments, recurring automatic draft and biweekly payments if offered by your servicer. Contact your new servicer directly for details on all available payment options.
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Who is the new servicer for my mortgage loan?
Your Notice of Servicing Transfer (mailed in the bright Fairway green envelope) will provide you all of the contact information for your new Servicer. To assist you, below are a few of the industry leading servicers who may receive servicing transferred by Fairway:
ServiceMac - Retained Servicing
Toll Free
1-877-297-5350
Visit Website
M&T Bank
Toll Free
1-866-820-1668
Mr. Cooper
Toll Free
1-877-372-0512
RoundPoint Mortgage Servicing
Toll Free
1-877-426-8805
Flagstar Bank
Toll Free
1-800-968-7700
Chase
Toll Free
1-800-848-9136
Shellpoint Mortgage Servicing
Toll Free
1-800-365-7107
Webster Bank
Toll Free
1-800-270-5400
Dovenmuehle(DMI)
Toll Free
1-800-669-4268
LoanCare
Toll Free
1-800-274-6600
Mission
Toll Free
1-855-626-9167
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Can the servicing of my mortgage loan be switched to a servicer other than the one it has been transferred to?
Upon the sale and servicing transfer of your mortgage loan, Fairway is unable to subsequently change your new servicer. Your new servicer controls the activities and decisions supporting your mortgage loan. With written authorization (as per your new servicer’s requirements), Fairway may be an advocate for you if requested. Even if your servicing transfers, your relationship is important to each of us at Fairway.
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What is private mortgage insurance (PMI)? Can I remove PMI from my monthly payment?
Private mortgage insurance (PMI) is required on Conventional mortgage loans that originate with a loan to value (LTV) ratio of 80% or more. If the down payment at the time of the origination is less than 20% of the original mortgage loan amount, PMI must be included in the escrow portion of the monthly payment.
Based on your loan type and other investor requirements, you may be eligible to request PMI be removed prior to its automatic termination date.
You can request PMI be removed when your loan-to-value ratio (LTV) reaches 80%. A written request must be submitted to your current servicer for the loan to be reviewed and the conditions must meet all applicable requirements for approval.
PMI will automatically be dropped when the LTV reaches 78% based on the original term and amortization of the mortgage loan.
PMI removal request must be submitted to your new servicer once your loan transfers. PMI removal requests cannot be processed until your mortgage loan transfers to your new servicer.
For more information, please contact our servicing department at servicing@fairwaymc.com
PMI Removal
The ability to remove PMI is governed by federal law and investor requirements. An investor is the party who owns your mortgage loan. Examples of the top investors for conventional loans are Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation). Decisions and requirements may vary from servicer to servicer based on processes and interpretations. Your current servicer performs this evaluation and the processing of the request.
Fannie Mae - View Guidelines, Click Here
Freddie Mac - View Guidelines, Click Here
Decisions and requirements may vary from servicer to servicer based on processes and interpretations. Your current servicer performs this evaluation and the processing of the request.
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What is a recast?
Watch VideoA recast is the process of paying a large principal payment on your loan and re-amortizing the payments over the remaining term of the mortgage. This does not shorten the term or change the interest rate like a refinance, but it reduces the amount of the principal and interest portion of the monthly payment over the remaining life of your loan. This process is most commonly associated with the sale of an original home, investment home or second home.
Example – When buying and financing a new home, the new mortgage may originate before the sale of the previously owned property occurs. When the previously owned property sells, some customers wish to pay those sale proceeds toward the unpaid principal balance of their new mortgage loan.
Conventional Fannie Mae and Freddie Mac loan types are eligible to be recast.
FHA, USDA and VA loan types are not eligible to be recast.
General Recast Guidelines
- Written request is required
- A minimum amount (typically $10,000.00 or 10% of the unpaid principal balance) may be required
- A recast fee may be assessed, and this varies by servicer
- Servicers may limit the number of recasts that may be performed during the life of the loan
- No prior modifications to the loan
- Loans cannot be delinquent on payments or in an active bankruptcy status
- Interest-only loan types are not eligible
- Adjustable rate mortgage (ARM) loans must be reviewed for a Recast no later than six-months before the first scheduled interest rate change
- A recast cannot be performed during the Fairway servicing period – the request must be processed by the new servicer
- Customers may have a waiting before becoming eligible to apply for a recast – this waiting period varies by servicer
- A recast is a formal loan modification requiring documents to be produced, mailed, signed by customers and returned to the servicer
Please view this helpful video for more information about a recast
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When I complete my recast, will the private mortgage insurance (PMI) be removed from my mortgage loan?
The process of removing PMI once a recast is complete does not occur automatically.
This is a separate request and process that is handled by your new servicer.
Depending on the loan type, the amount paid toward the unpaid principal balance, and the original appraisal amount, loans may qualify to have PMI removed after a recast is complete.
Loans must meet investor guidelines for PMI deletion including loan-to-value ratios and payment history requirements.
Decisions and requirements may vary from servicer to servicer based on processes and interpretations.
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What is an escrow account?
Watch VideoAn escrow account is an account that receives a portion of your monthly mortgage payment that covers the yearly costs of:
- Taxes
- Homeowners Insurance
- Mortgage Insurance
- And other escrowed items, as applicable
The monthly escrow payment amount equals 1/12 of the total of your taxes, homeowners insurance, and mortgage insurance, if applicable. Depending on the location and state of your mortgage property, there are additional factors in the calculation of your escrow payment.
The monthly escrow amount is added to the principal and interest portion of your payment to make up your total monthly mortgage amount. Escrow amounts may change from year to year based on your tax and insurance amounts.
Some states allow mortgage servicers to maintain a cushion -- or an additional amount of funds -- to help offset a large shortage on the escrow balance should tax amounts and/or insurance premiums increase significantly. Cushion amounts may be no more than 1/6 of the total escrow charges for the year, which means no more than two months’ worth of monthly escrow collection may be maintained in the escrow account above and beyond amounts required to pay the bills for escrowed items when they come due.
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Is an escrow account required on my mortgage loan?
Escrow accounts are required for the life of the loan for FHA and VA loans. Conventional loan types may qualify for escrow deletion if specific investor requirements are met.
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Can I delete my escrow account from my mortgage loan?
In some instances, escrow accounts may be removed from the mortgage loan. These have to be reviewed on a case-by-case basis dependent upon investor and agency requirements. A written request is typically required.
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My mortgage loan is escrowed, and I received a notice my taxes were not paid? What do I do?
Some city and county tax agencies send copies of bills to the property owner, even if taxes are included in your escrow account. If you are concerned your taxes have not been paid timely or would like to forward the bill to Fairway to ensure it is paid, please email us at servicing@fairwaymc.com or call 1-800-201-7544. If your servicing has transferred, please contact your new servicer.
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My Loan is transferring, do I notify my insurance company?
Fairway will send a transfer notification to your insurance provider with the name of the new servicer, the transfer effective date and the mortgagee clause for the new servicer. It is recommended you contact your insurance provider upon receipt of your Notice of Transfer to ensure all records are up-to-date and accurately reflect your new servicer’s information as provided by your new servicer.
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I wish to change insurance providers, what is the process?
Please do not change insurance companies/carriers until after your loan transfers to your new servicer!
Your new servicer may not receive key details about a new insurance policy or provider timely due to transfer activity.
Delays or missed premium payments may result in policy cancellation.
Contact your new servicer after your loan transfer effective date to obtain details and requirements if you wish to change insurance providers.
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I received a notice my homeowners insurance lapsed. What do I do?
When your loan transfers, it may take a few weeks for all documents and information to be updated. Please reach out to your current servicer if you receive a notice that your insurance lapsed and your loan is escrowed.
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I received a check from my insurance company that also has Fairway’s name on it. What are the next steps?
Please call Customer Experience at 1-800-201-7544 or email servicing@fairwaymc.com for more information and instructions.
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I obtained a new Homeowners Insurance policy after I closed on my loan. What are the next steps?
It is important to contact your current servicer directly if you change your insurance carrier.
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When will I receive my 1098 Year End Interest statement?
A 1098 Mortgage Interest statement is required if an amount of $600.00 or greater is paid toward mortgage interest. Fairway is required to generate and mail these statements no later than January 31st each year on loans that meet this requirement.
As some loans transfer to a new servicer as of the first payment due, Fairway may not generate a 1098 Mortgage Interest statement on every loan we originate.
Please be advised a separate 1098 Mortgage Interest statement will be mailed, if applicable, by each mortgage servicer who serviced your loan during the previous calendar year.
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I am expecting a refund regarding the VA Funding Fee on my loan. What is the process?
The eligibility and dollar amount of a VA Funding Fee refund is determined by the VA. Any VA Funding Fee refunded will be applied toward the unpaid principal balance on your loan. Please contact your VA office for details on this process.
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My home has been damaged by a natural disaster. What do I do?
We hope that you are safe and understand this may be a difficult time. Please know we are here to support you in any way that we can.
Fairway has a dedicated toll-free number and a dedicated email center.
Disaster Assistance Hotline: 877-651-2770 - our representatives will answer your call Monday through Friday, 8:30am – 5:00pm Central Time.
Email: disasterhelp@fairwaymc.com
If your property has been damaged by Natural Disaster...
Next steps include reaching out to your Homeowner’s Insurance Company or your Secondary Insurance Company (this may include policies such as flood, and earthquake).
By contacting us at disasterhelp@fairwaymc.com or at the above FIMC Disaster Assistance Hotline, we can assist you with your homeowner’s insurance company contact information and policy information as well as providing assistance if you have difficulty making your mortgage payment.
If the servicing of your mortgage loan has been transferred, we can provide the contact information to reach your current mortgage servicer. The contact information for your new servicer may also be found on www.FairwayNEXT.com.
If you are preparing for a Natural Disaster…
FEMA has provided a few websites which will assist in preparation for various types of disasters: www.ready.gov
FEMA
-- Hotline: 1-800-621-FEMA option 2 or TTY 1-800-462-7585
-- Website: www.fema.gov
-- To apply for FEMA disaster assistance: www.disasterassistance.gov
-- Or call 1-800-621-FEMA
Red Cross
-- To apply for Red Cross disaster assistance: www.redcross.org
-- Or call 1-800-RED-CROSS
Branch NMLS: 2289
Licensed by the State of PA
Equal Housing Lender
Not everyone will qualify to buy a home. Mortgage interest rates, loan programs, credit standards and guidelines change frequently. Call us for more information and to discuss your plans in more detail: 717-431-9299.