I have a question for Ezdriver or any Sales Consultants at a builder or LO…..
We are having a home built in Hou, TX and our Processor called us yesterday and said she sent our file back to underwriting with the conditions we provided and should hear something Friday. We received a conditional approval on 7.11.
Well I asked her about our close date because the date was changed last week from 8.15 to 8.29 then to 8.22….All within 3 days. She told me she doesn't know and we need to speak to the builder about the completion date of the house.
The original completion date was 7.31 and close on 8.15. Then the closing was changed to 8.29 so we spoke with the sales consultant last Tue about the delay. He contacted the project manager and someone at the builder's corp office and he called me on Wed and told me the closing date was changed to 8.22…which would mean the house has to at least be completed by 8.6 cause the lender need to send off paperwork to DPA 10 days before closing. We did a walk through with the sales consultant on Tues (7.22) and he was not understanding why they needed an additional 3 weeks. The house was mostly completed. All that was needed was the landscaping in back & front, completion of the fence on 1 side, the blind, and repainting the interior. We went to see the house on Sat (7.26) and they have completed the fence, blinds and painted. Now we are just awaiting the landscaping and the appliances. I understand there could be delays due to whether or items being delivers and so forth.
My Question is shouldn't the builder and lender be in communication about the dates??? I know the builder has to sign off on the completion of the house BUT should the lender be contact with the builder to know to these date??? Should I just continue speaking with the sales consultant myself to get those dates? 
Thanks!!!!
@ezdriver wrote:The question that I get asked most often is who controls the closing date. We are a national builder and I'll share here how it works with us.
Construction department determines the target closing date. We schedule closings in an "even flow" process to avoid peaks and valleys. Once drywall is hung, our escrow department mails a letter to buyers stating the closing date that has been set once the drywall is hung ... meaning 30 days out. From that point, the ball is in the lender's court. No closing can occur, regardless of how badly different parties want to close on a particular date. The only time the closing date stated in the letter will change is if the lender fails to clear the file for closing. My original target closing date was 6/15...then 7/10 .... then 7/15 and now 7/31!! By the way, my lender tried to close on Friday 8/1 and my management jumped all over them and demanded to know why the file could not be closed tomorrow ... and the lender caved.
Completion of construction on our homes is never an issue for closing. Almost 95% of the time its the lender and the other 5% of the time its the buyer(s).
The sales counselor is not the correct peron to ask about the cloing date. The loan officer is the correct person to ask.
Hope that I answered the question asked. If not, let me know and I'll give it another try.
Well it seems that we are getting conflicting info. The lender is telling us the closing date was changed because the project manager stated they were not able to finish the home by the completion date. Which i don't understand why... the completion date was 7.31 and as of last Sat when we went by the house the only things left to do was the landscaping in the front/ back and cleaning the house up. That does NOT require an additional 3 weeks. The original close date was 8/15 then it was moved to 8/29 now it was 8/22. And the only reason they changed it to 8/22 was because we complained and the sales counselor did a walk through with us then he emailed the project manager, LO and someone from the corp office.and they changed the date from 8/29 to 8/22. He (sales conselor) was not understanding why they needed the extra time.
When I spoke with the LO today he said they were waiting on the final sign off from the builder. Our file is sitting with the underwriter to see if our conditions are approved..which the processor says we should get by Fri. But I'm told we won't get a final approval until the builder is finished. It just seems like they are dragging their feet.
I don't know. Im ust stress to the max right now. I have so much to do. I have to transfer the kids school and daycare and be our apt by 8.31
@ezdriver wrote:Your purchase agrremnt with the builder should address the issue of delays in construction completion and penalities if any. Sounds like the builder is one where the construction manager runs the show. That is not a good thing. In our company, the construction team is told by executive management to get the house ready to close by a date certain. Sometimes my construction manager would sometimes have crews working throughout the weekend to make the closing date.
I need to reread the contract.
But I spoke with the LO & Sales counselor and they told me we will not be charged any penalties if the date is extended due to home not being completed. penalties will be changed only when they house is completed and closing is extended for whatever reason. There should not be a reason to extend the the date anymore. The house SHOULD be completed next week and it has to be in order for close on 8.22. The reason the project manager said there was a delay was they didn't have enough guys all the time yet i go over there 6 more house up and finished.
Thanks for your answering my questions Ezdriver!!! And congrats on your CTC. Hopefully everything goes well. 