Bookkeeping Tips for Homeowners

If you have ever purchased a home or refinanced a mortgage, you would agree that there is generally a lot of stress created around paperwork: what you have handy, what you need to provide, and what is important to have nearby just in case questions arise.

We recently refinanced and it made me realize that many of the principals that we use with our business clients can easily be applied to homeownership finances - especially document storage.

So here are a few tips from us to you on ways to help make the home buying process less stressful (honestly… its stressful enough in this hot market, am I right?). Being organized also means that you help your real estate agent be more efficient and effective as home buying can mean an intense flurry of activity. Being prepared means less chaos for everyone and that can give you the competitive edge in an already tight market.

So here are a few tips on how to help prepare yourself for buying a home.

Paperwork preparedness for homeowners:

Spend time on the front end preparing. This preparation will be extremely beneficial during the buying or selling process. Some of the documents you may need to produce quickly are

  • Last two years of tax returns

  • Round up all things paycheck/payroll related: last 2 years or W2’s, last 2-3 paystubs

  • Have a trust? Get a copy - you will need it

  • Currently have HOA fees? Selling means you will be asked for that info

  • Bank Statements: have at least the last two months on hand

  • Have a job with an equity component? You may need that agreement as well

Once you have collected these documents (more is more in this case), download one the amazing digital storage platforms mentioned below & use the scan feature to upload them in or save them directly to the folder via download.

Most lenders utilize online platforms for file sharing, so preparing ahead of time means a quick upload when they start working to get your file ready for approval.

Tips for digital file storage:

  • Utilize a cloud program such as OneDrive, Dropbox, or Sync

  • Change the file name (because the assigned ones never make any sense to most of us)

  • Use a simple, clean format. We like to use full date (including year) & name, for example: 3.21.2022 Checking Account

  • Don’t be afraid to create subfolders for different types of documents within your folder, but keep it simple: Taxes, Bank Statements, Family Documents, etc.

Follow these steps & you will have a MUCH smoother process when applying for a mortgage!

Happy home shopping!!!

Kate Wittemann