After the Closing

Documents To Keep
Out of that vast sea of papers that swept over you at closing, what should you bother to keep? The answer is simple: Everything you signed your name to. That includes:

Settlement statement - This is the form that itemized everything covered in closing; it showed which costs were paid by seller and buyer.
Truth-in-Lending statement - This document is required by federal law, the idea being that borrowers should know the details about the loans they make. On this document, you see an annual percentage rate (APY). This will be higher than the rate stated on your mortgage because it factors in the points and other fees you pay. The Truth-in-Lending statement also spells out the total amount you're financing, the total amount of interest you�ll pay over the life of the loan, what your monthly payments will be and so on.
The note - This represents your promise to pay the lender according to the agreed-upon terms. It details all the terms of the loan, including any penalties the lender will impose if you default. It also explains your right to prepay the loan (that is, pay up your mortgage before your loan period is up) and specifies if there are any prepayment penalties.
The Deed of Trust - This is the legal document that secures the note and gives the lender the right to take your house if you default. It spells out all your responsibilities as a borrower.
The Deed - One of the most important papers in the bunch, this is the document that transfers the ownership of the property from the seller to you.
Affidavits - On closing day, you will sign many affidavits, such as stating that you intend to occupy the property and so on.
Riders - These detail any additional requirements that apply - for example, an ARM rider or a condo or PUD rider for condominiums or planned unit developments.

Besides closing papers, you should, of course, keep all insurance
records on your home. You should also keep records of the costs of home improvements you make over the years.

Maintenance And Repair
Since your home is your largest and most valuable asset, it makes sense to keep it in good condition. Home maintenance consists of regular activities necessary for the care of the home and the property it sits on.

Check your home and property at least once every 6 months for needed repairs. As a home owner, you should keep detailed records of all repairs and home improvements performed on your home throughout the entire time you live in the home. Repair records should be kept to verify that repairs have been made, the date they were made, and the cost of the repair. This information can be helpful when trying to sell the home.

Home repairs can be expensive, so it is important to plan ahead for these costs. Housing experts recommend setting aside 1 to 3 percent of the market value of your home each year to pay for eventual maintenance and repair costs. While you may not need to use this money every year, the accumulated funds can help pay for large expenses, such as a new roof or a new heating/air conditioning unit. You may want to consider our Money Market account to save for future home repair needs!

If you decide to hire a home repair contractor or handyman to make needed repairs or to perform necessary maintenance, be careful in your selections. The following guidelines should help you to choose a reputable contractor.

Ask friends to recommend repair contractors.
Get at least three written estimates for the project. Most contractors give free estimates.
Ask for and check references.
Ask to see the contractor's license. Also ask for proof of insurance and bonding.
Do not pay the contractor in full before the work is done. Some contractors will ask for a small down payment, which is permissible.
Get a signed written agreement before work begins or money is exchanged. The agreement should specify both work and payment schedules. It should also detail the type of work to be completed.
Do not make final payments on the project until the work has been performed to your satisfaction.

Check with your local Better Business Bureau or the Tennessee Attorney General�s Office (865-594-6222) if you have questions or complaints about a contractor.

Remember - If you need to borrow funds for maintenance or home repair we are ready to help! We offer our members a wide variety of Loan Services with your needs in mind. You can even apply online.