Loan servicing is when a company or lender handles the administrative aspects of your loan process. This includes collecting monthly payments, keeping records of your payments and current balance, handling taxes, and other maintenance tasks.
Loan servicing is done by the financial institution that gave you your home loan. So, if you choose to use an agency to handle your owner financing, that agency will be in charge of loan servicing. This is a great option if you want the relaxed restrictions of buying a home from an owner but don’t want to deal with them directly.
When you go through an agency they’ll require a small fee for handling the servicing. For that fee, you’ll receive the convenience of knowing that everything is being handled. All you need to do is them the payment every month and they’ll ensure that everything goes smoothly.
In case all of this is a little confusing, let’s break down how the process works.
Your loan servicer is crucial to helping you stay on track. A good loan servicer can be the difference between staying in your home and leaving it, so you want to make sure you’re choosing the right team.
With that in mind, let’s discuss what you should consider when choosing a loan servicer.
Choosing the right loan servicer can make the home buying process much easier. Take some time to find a team you feel you can work with before you go house hunting. That way, you’ll know you’re prepared to make an offer when you find the right house.
2400 Augusta Dr. Suite 460, Houston, TX 77057
Alliance Bankers and Mortgage Group, Inc. | NMLS# 925521
Mona Elmeligy | NMLS# 267209 Broker/Banker
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