@Goodcreditsesame wrote:
Hello,
I dont mean to hijack the thread, but I dont want to bother asking a question on my own (I never recieve responses anyway, LOL)
So with a new build, how does it work as far as signing for the loan?
Do you pre qualify just like a previously built home?
What happens if the home isnt to be finished until months later?
Ex: If I get a pre-qual today and my home isn't finished until January, would my close date by January or as soon as my loan is underwritten? if it is the latter, does that mean my credit will be pulled again in January?
Can someone please explain the process? Thank you so much.
Here's how our process went:
February 2017, we signed our contract. At this time we picked the model floorplan/elevation we wanted and also discussed overall structural design of the home. Our builder gives us the option to modify the floorplan at no additional cost. We also had to pay a $1,000 deposit at the time of signing the contract. Because we went into the process thinking we would do FHA, it was agreed that we would have to contribute the 3.5% downpayment. We also were put on a payment plan with the builder to contribute 60% of the downpayment by June 2017. Of course if we wanted to pay extra, then we could. Regardless, the other 40% of the downpayment is due at the closing table.
Under the terms of the contract, we had two weeks to find financing. We used one of their preferred lenders because the deal at that time was we would get $15K towards closing costs by using one of them. Our lender did a pre-qualification and submitted a loan commitment letter to the builder. Three days after my husband and I signed the contract, we received the official ratified contract from the builder. Within that paperwork was the loan commitment letter from the lender and the information about the title company that we were to use.
As of now, our scheduled closing date is November 3rd. Because we signed the contract in February, we have to re-submit new copies of everything as it is now time for us to finalize our loan and lock in our rate. And yes, they did pull our credit again. We've also been told by the lender that they will do a soft pull of our credit 7 days before closing to make sure we haven't opened any accounts or maxed out credit credit cards.
Our builder is saying that our home will be finished by October 27. For us, that gives a full 7 days before our closing. For our builder the process is that we would have a walk through where we will go over how the home looks, warranties, etc. At that time we will also do what's known as a "blue tape inspection". This is where we will walk through the home and look for any chipped paint, damages to appliances or flooring, etc and mark it with blue painters tape. The builder then has a couple of days to go in and make the corrections. We will then do a final walk-through the day before closing and then head to the closing table.
