We are often asked which closing documents to keep after the closing of a property. The closing documents are normally handed to the respective party in a folder. These should entail all documents that are signed. The documents mentioned below are the most important ones. We have seen certain closing companies to deliver a CD/DVD with all closing documents. This helps in cutting down the amount of paper used for each closing. Should you loose the folder or CD/DVD the closing company should still have a record on hand. Please call me at 812-499-9234 if you have any questions.

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 Texas A&M, 2000; http://www.realtor.org/rmotoolkits.nsf/customermain?readform