What do you need to keep for your new home recordkeeping after closing? You receive so many papers throughout the process of buying a home, it is hard to know what is important to keep.
Just like any other investment, you need to keep thorough records of your financial documents. Some closing companies are beginning to provide electronic copies of your documents, but this electronic file may not include all the documents you should retain.
Initial Sales Documents
The home buying process begins with a sales agreement. This is the first document that should be retained for your new home recordkeeping. If you signed your sales agreement electronically, be sure to download a copy of the sales agreement that was signed by all parties.
Any addendum to the sales agreement should also be kept in your file. You should maintain a complete trail of the final agreement between you and the seller. Any repairs that were agreed upon due to the inspections will be documented on the agreement that is signed by you and the seller.
It is wise to also keep a copy of all disclosures that the seller has provided in your new home recordkeeping. You may need to refer back to these documents, should any issues arise after the closing of the home.
You should maintain a copy of your home, pest, and radon inspection reports for at least a few years. The home inspection report is a good reference for planning home maintenance projects.
At the closing, you will sign the final documentation for your home. You will receive an unrecorded copy of your deed at that time. After closing, the title company will record the deed with the county where your home is located. You may have to request a copy of the recorded deed from the closing company.
There are companies who will contact you offering to provide you a copy of your recorded deed for a fee. You do not have to pay to receive a copy. Either contact the title company or your real estate agent if you have not received it within a few weeks of closing.
Another important document to retain until you sell the home, is a copy of the title insurance policy. It is not uncommon for a homeowner to be asked for this document when they are selling their home. Often it is because something was not correctly recorded. The attorney or title company doing the closing will need to know the company that provided the title insurance and your policy number so that they can resolve any issues prior to closing without additional cost to the homeowner.
If you obtained a mortgage, you will also want to retain copies of the mortgage with your important papers. Often the mortgage company will include payment coupons with your paperwork at closing in the event you do not receive a payment booklet or invoice prior to the due date of your first payment.
A closing disclosure will be signed at the closing table. It is also referred to as an ALTA. Your tax preparer may need a copy of this to determine if you have any deductible expenses for your income tax filing.
Your insurance company will provide you with an annual policy for your home. This document should also be maintained with your new home recordkeeping. You may need to refer to this document when you have an insurance claim, or just to get a policy review.