Your loan is approved by Churchill and you buy your first home (woo hoo! 🎉). Then next thing you know, you're making your first mortgage payment to a company you've never heard of. What happened?
This is an extremely common practice for mortgage lenders. A company may sell the loan to another mortgage company or servicer to free up additional capital in order to continue providing home loans. In layman's terms, the company can continue providing loans without running out of money.
Churchill may act as the servicer themselves while other times they transfer or "sell" the loan. When this happens, the new loan servicer owns the rights to your loan and will now be responsible for collecting payment. Fear not! This does not affect your interest rate, loan amount, or type of loan.
If the loan is "sold" or transferred, you will receive a letter in the mail with information regarding your new servicer and how to make your first payment once that process is complete.
Your mortgage can also be sold more than once, which has nothing to do with you as a homeowner. It is simply a business decision that companies make to free up capital.
If you have questions or concerns regarding the transfer of your loan, or if you have general questions as a first-time home buyer, Churchill Mortgage is a fantastic resource!
Churchill Website
888-562-6200
If you have any additional questions, our Customer Success Team is always here to help! You can reach us by completing this request form.