What Do I Do With All of These Closing Papers?
As long as you own your home, you want to keep a copy of everything you sign. This checklist makes organizing easy.As long as you own the property, keep a copy of everything you sign. This includes the:
- HUD-1 Settlement Statement - An itemized list of all the costs associated with closing.
- Truth in Lending Statement - A summary of the terms of your mortgage.
- Note - Your promise to repay the loan.
- Deed - The document that transfers the ownership of the property from the seller to you.
Keep all of these documents in a safe place for future reference -- you may find it helpful to store them together in a file labeled “Home,” rather than in a yearly overall tax file.
When it's time to file your income taxes, have your HUD-1 Settlement Statement handy. This document lists the real estate taxes and loan-discount points you paid at closing, which may be tax deductible. When you sell your home, your closing papers can help you prove capital gains and losses.
Besides your closing papers, keep all insurance documents in a safe place and maintain records and receipts of all home improvements you make. Improvements increase your home’s “cost basis,” which will be used to determine your profit for tax purposes when you sell your home. Learn more about the tax benefits of remodeling.