According to The American Institute of Stress, buying a home can be one of the most stressful things you will do in your life. All the paperwork required can add to that stress if you don't stay organized. If you are moving from a home you own to a new home, you may be dealing with paperwork from both the sale of your existing home and the purchase of your new home at the same time, which can become completely overwhelming. That’s why I’ve put together a quick guide to help you get organized.
Know What You Need to Keep
When buying a home, keep your utility bills and change of address confirmation from the post office for one year. Keep receipts for any upgrades you make to your home indefinitely because you may need them to justify the value of the home to future buyers, lenders, or insurance companies. Documents on appliances and routine maintenance should also be included.
You should also retain copies of your insurance policies, your mortgage documents, and an inventory of all your personal property. Keep your closing documents until you sell your home. You should also keep copies of the title, deed, and appraisals. If you have a home warranty, keep a copy of it until it expires.
Organize Your Documents Digitally
Paper copies of documents can be easily lost or damaged. Digital copies are easier to protect and find. Some documents may be available in digital formats from the issuer. For others, you can make a digital copy using a scanner or smartphone and save it as a PDF that you can send to all of your devices for viewing and signing.
For example, you can send PDFs to your iPad instead of trying to view them on the smaller screen of your smartphone. With just a few clicks, you can save a PDF to your tablet for viewing at any time.
Work With a Real Estate Agent
Part of my job as your real estate agent is to help you organize the documents you need for selling your home:
Information about professionals such as stagers, plumbers, electricians, and movers
Files for tax purposes
Listing sheets, ads, and marketing materials
Purchase offers
Legal documents
Disclosures
Gather and Group Documents
You probably have several important documents stored in your home. Now is a good time to gather them all together and organize them. Search your home for documents, and collect anything you are storing at your office. Contact family members who may have any important documents.
Once you have all your documents, separate them into piles based on how important they are. Throw out anything that you don't need to keep, such as forms that you can download from the internet. If it has sensitive information on it, you may want to shred it first. Once your documents are grouped, digitize and organize them.
If you have digital files that you would prefer to store separately, then you will need to use a PDF separator. These tools are free online and allow you to divide out files and save them separately in only a few clicks.
Update and Archive
There are many documents that you don't need to keep forever. Regularly go through your paperwork and archive or discard documents that you no longer need to store. This is also a good time to add any new documents that you haven't filed yet. Review documents, such as insurance policies, that may need to be updated.
Keep Files up to Date
Dealing with paperwork isn't a task that most people look forward to. However, taking the time to organize, digitize, update, and protect your documents can save you a lot of hassle. Use this guide to help you know what to keep on hand before, during, and after a home sale. Then, archive or destroy unnecessary documents to keep your paper and digital files organized.