What it Means When Your Mortgage is Sold
After your home loan has funded, you might be busy moving in and getting settled. But behind the scenes, your loan is still going through a process.
A funded loan is usually sold off in order to make those funds available again to the lender. A lender only has a certain amount of money they can use to provide borrowers with loans. In order to make this money available for new loans and therefore new business, your funded loan is often sold to another company.
A variety of things can happen here. Sometimes the company that buys your loan assumes all servicing of that loan meaning you will make your mortgage payments to that new company and contact them if any issues arise. Other times, the new company purchases your loan but you still deal with the lender you originally did business with.
If you have questions regarding the selling of your loan after it is funded and closed, talk to your mortgage originator. While it is a very normal part of the home loan process, it can come as a shock receiving the notice in the mail.