Which documents to keep from your home closing

Which documents to keep from your home closing.

 

home closing agreement

 

When you buy a home, you sign a lot of paper–most of it in duplicate.  Of this stack of documents, which ones are particularly important to keep?

  • Settlement statement.  Itemizes all the costs–commissions, loan fees, points, hazard insurance–associated with the closing.  You’ll need it for income tax purposes if you paid points.
  • Closing Disclosure.  Summarizes the terms of your mortgage loan, including the annual percentage rate and rescission period.
  • Mortgage and note.  Spell out the legal terms of your mortgage obligation and the agreeed-upon repayment terms.
  • General Warranty or Quit Claim Deed.  Transfers ownership to you.  You will receive a copy of your recorded deed from the county after they record it.  This process may take several weeks.
  • Security Deed.  Transfers legal title to the lender during the term of the mortgage.
  • Affidavits.  Binding statements by either party.  For example, the sellers may sign an affidavit stating that they haven’t incurred any liens.
  • The Sales Contract, Seller’s Disclosure, and Other Binding Agreements.  An example of other binding agreements that affect the property would be a boundary line agreement which was drawn up and signed because a portion of the neighbor’s fence is on your property.
  • Insurance policies.  Provides a record and proof of your coverage.
  • Warranties.  Any warranties that may have been transferred to you at closing, a home warranty received at closing, or any warranties that you receive over the years as you make repairs or do improvements to the property.
  • Your appraisal.  While not foolproof, your appraisal is usually the best indicator of the corect square footage of your home.  Public records are notorious for being inaccurate.
  • Survey.  Shows the size of the lot, where the home sits on the property, fence lines, required set backs, easements, property lines, flood zone information, and more.
  • Title Insurance/Title Documents.  Provides a record of title insurance.
  • Your home inspection report(s).  Your inspection report may contain information about your home that could be useful in the future.

Other items may be added to this list of which documents to keep from your home closing if there were unique circumstances connected to your transaction. You should contact your real estate agent for advice on whether you should keep any other documents from your home closing that are not listed here.

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