After successfully paying off your mortgage, you regain complete ownership of your property as the lender relinquishes any claim. This marks a moment of relief following years of meticulous planning and budgeting. However, the process doesn’t conclude here; acquiring the deed in your name is the next crucial step.
A deed, an official legal document, signifies that your lender holds the right to your home in case of loan default. The timing of receiving this document depends on your loan servicer’s procedures—it might be sent directly to the government records office where your deed was initially recorded.
Before reaching this stage, there are additional steps to ensure that all your documents and procedures are in order.
Begin by requesting a payoff quote from your loan servicer or lender. This quote outlines the total principal and interest required for full homeownership, often with a specified deadline. While you can extend the payment duration, doing so incurs additional interest.
Fees accompany the release of final paperwork and the mortgage payment. For instance, you may need to provide proof to the county of your homeownership. Some lenders may charge a fee for early loan repayment, surpassing the original term.
After settling the mortgage, your lender will dispatch several documents within 90 days. Apart from the deed, you should receive a canceled promissory note, recording the promise to repay.
While not mandatory, having other documents proving loan payoff alleviates concerns. Your local records office will then record a certificate of satisfaction upon receiving proof of full loan repayment, usually with a service charge ranging from $25 to $50. This document is crucial for your records.
Additionally, you will receive the final mortgage statement, confirming that you no longer owe any payments, including fees, principal, or interest. A loan payoff letter from the servicer may also arrive, affirming the complete repayment of the loan. Collectively, these documents serve as irrefutable proof of your full mortgage repayment.
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