Featured Image Caption: Documents for Buying a House
New homeowners are often bombarded with new information to remember and paperwork to complete as they get ready to close on their home. While this can be an overwhelming time, buyers must be careful to not let any details fall through the cracks.
Buying a home in the near future? Don’t forget to acquire the following four documents.
Proof of Ownership: Deed and Title
Proof of ownership is likely the single most important thing to consider when purchasing a home. When buying a house, a buyer will not be able to claim the rights to their new property if they don’t have the necessary proof of ownership to prove they purchased the home. While many buyers assume getting the title and deed to their new home is a given when the house is sold, this isn’t always the case.
The deed to a home is the physical, legal document that records the purchase of this land and proves the buyer now owns the property. The title to a home is another legal term that gives the buyer ownership of their property. However, the title can have certain defects like levies or liens from the IRS, lenders, or creditors. To guarantee proof of ownership, buyers should run a title search and be sure to obtain the deed as well.
During the process of getting a home, it’s essential to purchase homeowners insurance. As it is a requirement by mortgage lenders and generally a good idea for buyers purchasing their homes outright, this insurance helps to protect buyers against damage due to acts of nature or emergencies. Experts recommend that buyers shop around with three or more insurers to find the coverage that works best for them. Additionally, looking for insurance well ahead of time will allow an insurer time to decide on the best level of coverage for a new home.
Property Tax Documents
Property tax documents help alleviate the responsibility of mortgage payments. With the proper tax documents, homeowners are able to take advantage of tax deductions to reduce their tax bill. After purchasing their property, homeowners can itemize their deductions on the IRS Form 1040 Schedule A. Additionally, homeowners should also keep the following documents close during tax time: receipts from real estate tax payments, home mortgage contracts, home improvement receipts, 1099 and W-2 forms, IRS Form 1098, and the HUD-1 Settlement Statement.
Home Inspection Report
Another important step in home buying process is Home inspection. During this inspection, inspectors will investigate a home for any issues that are then compiled into a report. After reviewing the information in the report, buyers will be able to negotiate with the sellers for a better deal on their home.
Getting these four documents are the first steps to take as a soon-to-be homeowner. Make sure that you have all of the above as you prepare to purchase your first home.
By Meghan Belnap
who is a freelance writer who enjoys spending time with her family and residing in Oklahoma.