Closing Documents You Should Keep
On closing day, expect to sign a lot of documents and walk away
with a big stack of papers. Here’s a list of the most important documents you
should file away for future reference.
- 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.
Sources: Credit Union National Association; Mortgage Bankers
Association; Home-Buyer’s Guide
(Real Estate Center at