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 When you were a renter or
living at home with mom and dad, and filing the IRS EZ Form, you probably
didn’t think about what papers you should save for tax purposes. Now that
you own your own home, it’s important to save papers for three reasons.1. Future Mortgage Documentation. 2. Tax Deductions. 3. Information For Buyers of Your Home. Future Mortgage Documentation The paper work for getting a mortgage has slowly been getting smaller. However, there are still pieces of paper you may need if you ever choose to refinance or sell your home and get another mortgage. The most important is tax returns, W2 pay statements, and paystubs. Next, keep your credit card statements. You may need to show business expenses that are reimbursed, proof of payment on a credit issue, or proof of medical bills that caused some late payments during an illness in your history. Finally, make sure you keep your bank statements. This assists the lender in verifying your assets without having to contact the institutions that manage those assets. Keeping this information together will save you time in the mortgage process. |
Tax
Deductions Each year you get a statement from the company who services your loan that states the amount of interest you paid and the amount of real estate taxes you paid. If you have a home equity loan or second mortgage, then you’ll get an interest statement from that company as well. Make sure you keep them for your tax preparer. If you make any repairs or improvements to your property, keep these receipts together and give them to your tax preparer so that they can determine if any of those are deductible. Information For Buyers of Your Home When you’re selling your home, many potential buyers are interested in the cost of owning your home. This means saving electric, gas, and other utility bills. Take the time to leave them with the Realtor listing your property. Also, make sure your Realtor has the home improvement and repair receipts. That way if any questions come up about what’s been done to your property, they can give an educated response without having to call you each time. While there are many more papers to keep other than those listed, if you’re ever unsure about what papers to keep and what papers to throw away, feel free to call me for help. |
