Do I Have to Keep My Mortgage Documents Forever?
Have you ever wondered how long you should keep your mortgage documents? Chances are, at some point, you’ve thought about getting rid of all that paperwork. However, do you know which documents are safe to get rid of and which documents you should keep? Let’s take a closer look to get a better understanding.
Keep the Most Important Papers: Any paperwork that is specifically for your home purchase or original loan should be considered important papers and saved for the life of the loan. Loan paperwork, such as refinancing agreements, should also be kept. By keeping this paperwork, it could come in handy if your monthly mortgage statement is not correct or if there’s an unanticipated change to your monthly interest rate. You should also maintain a copy of the property survey of your house. It will be important if you’d like to do certain home improvements or should there ever be a dispute about your property lines.
Tax Purposes: As a homeowner, you are required to produce records showing any income or deductions when it comes to filing taxes. You should also keep any paperwork that is associated with any major home improvements and renovations, such as a remodel or home addition, as well as records of expenses acquired while buying and selling, such as legal fees. 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.
Closing Disclosure: Homeowners need to keep the closing disclosure for at least a year, if not longer, after they close on their mortgage. The closing disclosure has information regarding the fees that were paid to both the lender and any third parties.
Where Should You Store the Paperwork? It’s important to keep copies of your documents in a safe place rather than online. Keeping everything in a locked filing cabinet or even a safety deposit box will help ensure that all papers stay safe.
When you do finally get ready to discard any mortgage and home-related paperwork, make sure to properly dispose of them by using a shredder since many of the documents contain sensitive information.
Still have questions about which mortgage documents you should keep and which ones you can discard? Give us a call and one of our seasoned mortgage specialists can help assist you.