Which Documents Should You Keep and for How Long?
Jun 26, · Other paperwork associated with the loan, such as refinancing agreements, should be kept for at least three years, although some real estate professionals recommend keeping this paperwork for up to 10 years. Aug 25, · This paperwork should be kept for at least three years from the date of a tax return. Deeds: You should save any deeds if you are the owner of the property. If your mortgage is paid off completely and the deed to your property is recorded, the documents may be discarded.
But when it comes to mortgage documents, which do you keep, and for how long? And which can you safely toss? As a rule of thumb, you should keep all of the contract papers detailing your home purchase and original loan for the life of the loan. Since home loans can have tax implications, the IRS provides guidelines on what paperwork you need to keep and for how long. You could be required to produce records that prove income, deductions or credit claimed for at least three years from the date of a return.
If you failed to file a tax return in any given year, there is no statute of limitations. In that case, the IRS recommends you keep documents related to those records indefinitely. You also should keep records of any major home improvements, such as a remodel or addition, and records of expenses incurred while buying and selling, such as legal fees and agent commissions, to calculate capital gains.
A capital gain is a profit that results from the sale of an asset that amounts to more than the purchase cost. The difference between the sale price and the original price is the capital gain. Keeping records of these expenses can help lower your capital gains tax. Other paperwork associated with the loan, such as refinancing agreements, should be kept for at least three years, although some real estate professionals recommend keeping this paperwork for up to 10 years.
Call our Home Loans Experts at to begin your mortgage application, or apply online to review your loan options. The U. Even so, your personal copy is the quickest way to prove that you are, in fact, the owner of your home.
Consumers should hold on to the Closing Disclosure for at least a year after closing on their mortgage. The disclosure details the fees you paid to the lender and third parties, as well as whether or not you paid discount points. For example, the home inspector may have estimated the age of the roof, which gives you an idea of when it will need to be replaced.
We recommend you keep important real estate records in a locked fireproof cabinet or safe deposit box. Make sure to tell any other party named on your mortgage where the files are and how to access them. Published on June 26, IRS Could Ask For Proof As a rule of thumb, you should keep all of the contract papers detailing your home how to play dunk contest on nba 2k13 xbox 360 and original loan for the life of the loan.
And sometimes longer. Closing Disclosure Consumers should hold on to the Closing Disclosure for at least a year after closing on their mortgage. See What You Qualify For.
Are electronic records an option? The answer is yes, but…
Apr 01, · The amount of time that you want to retain your mortgage documents depends on the item. You should keep monthly statements for the shortest amount of time. Because the information on these statements gets outdated quickly, you don’t need to keep them for long. Feb 21, · It says that you agree to pay your monthly mortgage payment until the loan is paid off after 10, 15, or 30 years. Homeowners should receive these documents at closing. Keep your loan documents throughout the life of your loan. Store your promissory note . Dec 19, · Other loan paperwork, such as refinancing agreements, should be kept for at least three years; some recommend keeping these as long as ten years. This type of .
Once a homeowner has paid off his mortgage, there are certain documents that should be put away for safe keeping. At the same time, keeping every piece of paperwork that crosses the threshold of a home can result in a lot of paper clutter.
Knowing which documents to keep and for how long can help reduce mounds of paperwork while still protecting the rights of a mortgage-free homeowner. The two main pieces of paperwork for a traditional mortgage are a deed of trust and a promissory note. Once the mortgage is paid in full, the homeowner should ask the mortgage company to release both the deed of trust and the promissory note.
The homeowner should make sure that land is released from the deed of trust. Although it might be tempting to shred the documents once the loan is paid off, homeowners should hold onto both the deed of trust and promissory note until the lien on the land is released. The homeowner should also keep the satisfaction note the bank sent that states the loan was paid in full.
If the documents are not filed properly, homeowners may also run into a problem when it is time to sell and be unable to prove the title is free and clear. In situations where the documents were discarded or lost, it can be a long process to track down the necessary paperwork. Since mortgages are often sold from lender to lender, tracking down the original paperwork can be a lengthy process.
Some banks are also more organized than others in keeping old paperwork. The paperwork will be in a fireproof, theft-resistant box inside a vault. Lori Soard has been a writer since , covering a variety of topics for local newspapers and magazines such as "Woman's World.
Soard is also the author of several published books, both fiction and nonfiction. Pay Off Mortgages. By Lori Soard. Typical Mortgage Documents U. Documents to Keep and Why Although it might be tempting to shred the documents once the loan is paid off, homeowners should hold onto both the deed of trust and promissory note until the lien on the land is released. Discarded Documents and Solutions In situations where the documents were discarded or lost, it can be a long process to track down the necessary paperwork.