This post should really be titled, "What do I do with all this paper?" Let's face it, when you close on a home, there seems to be more paper than one knows what to do with. Chances are many stacks will end up with coffee stains or crayon marks long before they even make it to some important place where you will NEVER look at them again.
If all this sounds familiar, fret not. Here are the only closing documents you really need to hang on to (and try to avoid the coffee and crayon stains if possible.) If you don't know what some of these docs are yet, don't worry you soon will when you close. If you can't stand the anticipation, you can always contact us and we will happily go over the deets with you (it's sort of our thing.)
- HUD-1 settlement statement. Itemizes all the costs — commissions, loan fees, points, and hazard insurance —associated with the closing. You’ll need it for income tax purposes if you paid points.
- Truth in Lending statement. Summarizes the terms of your mortgage loan, including the annual percentage rate and recision period.
- Mortgage and note. Spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
- Deed. Transfers ownership to you.
- Affidavits. Binding statements by either party. For example, the sellers will often sign an affidavit stating that they haven’t incurred any liens.
- Riders. Amendments to the sales contract that affect your rights. Example: The sellers won’t move out until two weeks after closing but will pay rent to the buyers during that period.
- Insurance policies. Provide a record and proof of your coverage.