Here at NewStyle Communities, we know that one of the most exciting times of buying a new home is when closing day is just within arms reach! There are wonderful things happening as we put the final touches on your new home in North or South Carolina. But with so many moving parts, we also know this time can be a bit overwhelming. So we have created a simple, streamlined home closing timeline that will take you right up to the big day.
What To Expect According To Our Timeline
When it comes to closing on a home, here is a quick overview of what you can expect in order to be best prepared:
6 WEEKS FROM CLOSING DAY
At this point, construction of your new home is complete! You will have a drywall inspection with your construction manager to make sure everything is as expected. From here, we will connect your utilities and reach out to all county and city agencies for final inspection and to get your home’s Certificate of Occupancy.
If necessary, now is the time to reach out to your lender and settlement agent to make sure things are in order with your loan. (If you’re interested in knowing more about your new home financing options, feel free to reach out to our preferred lenders.)
30 DAYS FROM CLOSING DAY
Your closing coordinator will reach out to confirm the dates for your New Home Orientation, and closing date.
1 WEEK FROM CLOSING DAY
You will have your New Home Orientation with your Project Manager, during which you’ll review all of the systems and operations of your new home, including appliances, the programmable thermostat, hot water tank, air handler, fireplace, and doors and windows. Any areas in need of cosmetic touch-ups will be documented, and addressed as soon as possible.
We’ll take as long as you need to ask questions and completely understand all the features and details of your home. At this time, you’ll also be provided with the Home Buyer’s Manual, which details our limited warranty, manufacturer’s warranties and tips for handling service calls during the one-year warranty period.
During this week you should also confirm that things are set with your movers, transfer your utilities, and ensure your financing is finalized.
CLOSING DAY
The big day is finally here! The time has come to deliver you the keys to your new home. Our front office will coordinate your home’s closing with our preferred closing attorney and, if applicable, your lender.
Your maintenance-free lifestyle has begun! Welcome home to your happy place — you deserve it. One last thing… you will receive a short, online survey from GuildQuality and we’d appreciate your feedback. In our history, 93% of our home buyers would recommend us to a friend!
What Are Key Things To Know Before Closing On A New Construction Home?
Closing is one of the most significant steps on your journey to homeownership. You’ll cross all the T’s and dot all the I’s to finalize everything and be ready to move in and enjoy. Here are some things to know before closing on a new construction home:
1.) Set Up Your Funds For Payment. Prepare to have the funds for closing costs available in the preferred form of payment. Most lenders won’t accept a personal check or money order, so make sure you know what they prefer so you can prepare how you will transfer the funds in advance. Once you’ve confirmed the correct required amount, here are some common ways your title company may accept your payment.
● Certified check
● Cashier’s check
● Wire transfer
2.) Thoroughly Read & Understand Your Closing Disclosure In Advance. The Closing Disclosure is a form that lays out the details of your loan, fees, insurance, interest rate, and estimated monthly payments. You’ll receive this information before closing, so to feel extra confident in your purchase, take a moment to review and understand the Closing Disclosure in advance. Some things you’ll likely confirm are:
● The interest rate
● The loan type, amount, and terms
● The spelling of your name, address, and contact info
● Any seller concessions, fee coverage, and warranties
3.) Know Common Home Closing Documents. Planning ahead is never a bad idea, especially for the day of closing on a house. Here are some common closing documents you’ll likely see and need to review and sign at the closing table.
● Property transfer forms
● The affidavit of title
● The mortgage
● Mortgage application
● Promissory note
● Closing disclosure
● Flood insurance disclosure
● Escrow documents or waivers
4.) Review Your Closing Checklist
● Connect with the closing agent
● Review your documents
● Prepare commonly needed items
● Check the basic info & fees
● Prepare your closing funds
● Select homeowners insurance
● Review seller responsibilities & warranties
5.) Know What To Bring On Closing Day. As the homebuyer, you must bring and sign specific documents on closing day. Here’s are some typical requirements:
● Government-issued ID such as a driver’s license, military ID, state-issued ID or passport
● Certified check or cashier’s check to cover down payment, closing costs, prepaid interest, taxes and insurance. You may be able to pay these costs in advance via wire transfer. In this case, you’ll want to bring a receipt for the transfer.
● Proof of homeowners insurance
● A copy of your contract with the seller
● Any additional documentation requested by the bank
What Are Closing Costs?
Closing costs on a home refer to the various fees and expenses that you need to pay when finalizing the purchase of your newly built property. These costs include, but are not limited to, loan fees, title and attorney fees, taxes, insurance, and builder charges. Being aware of closing costs is crucial, as it helps you accurately estimate the total cost of your home purchase and avoid surprises during the closing process.
In general, closing costs for newly constructed homes can range from 3-5% of the total purchase price. These costs depend on factors such as location, loan type, and your builder. Some common closing costs include:
1. Land purchase costs
2. Construction loan fees
3. Inspection and appraisal fees
4. Title and attorney fees
5. Taxes and insurance
What Happens At Closing?
When you sign the papers on closing day, ownership of the home officially transfers from the seller to the buyer. Here’s what you can expect at closing:
● Review and sign your loan documents, such as mortgage and closing disclosure. Additionally, show that you have homeowners insurance in place for your new home.
● The closing costs. Provide the remaining funds required to close the purchase, with a cashier’s check or bank wire transfer.
● Distribution of funds. Your lender distributes the funds to the closing agent, who ensures the builder gets the money.
● Set up escrow. Depending on the terms of your mortgage, you may need to set up an escrow account. Funds are typically put in escrow to cover property taxes and homeowners insurance in addition to your monthly mortgage payment.
Is There A Difference Between Closing on A New Home vs Resale?
Closing on a home, whether newly built or existing, is essentially the same process: Documents are signed to transfer ownership of a property from the seller to the buyer. But there are several key differences to closing on a new-construction home versus an existing one.
Inspections: One of the main differences between closing on a new-construction home and an existing home involves home inspection and subsequent repairs. With a new-construction home, inspections are conducted throughout the building process by both the builder and local inspection entities to ensure the home meets all code requirements.
Fees and Lenders: Another key difference relates to who pays what at the closing table. Who you choose as your lender can affect the amount of fees. Builders may offer various incentives, such as paying all or a portion of closing costs, to buyers who use their in-house lender or a preferred lender. And, as with existing-home transactions, a real estate professional involved in the sale of a new-construction home is typically paid at closing or once the deed is recorded.
Closing Day: The specifics of the process — who handles the settlement (an attorney, a title company, etc.) and where the closing takes place (builder’s sales office, title company office, etc.) — may vary depending on the builder and the requirements for your area.
Connect with NewStyle Communities On Homes For Sale in NC & SC!
Knowing what to expect when you are closing on a house is crucial for any new home purchase, whether it’s your first or fourth home. No matter what, NewStyle Communities wants you to feel confident in your purchase. We’re happy to help you with every step, from finding the perfect home in one of our communities to closing and beyond. These tips are just one way we’ll make buying your new home go smoothly. Still on the fence? Let us know if you have any questions. We look forward to assisting you!
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