Closing on Your Home
The delivery date that your Sales Consultant gives you is always an Approximate Completion Date. We cannot guarantee delivery dates because many factors affect the time it takes to build your new home.
Weather and building permit hold-ups can delay getting the foundation in and can also affect framing, roofing, and exterior finish. Material and labor shortages may affect the construction schedule. Also, if you are delayed in responding to a request by your lender, this can cause a delay. Changes submitted after the original Purchase Agreement has been completed can add days to the schedule.
LifeStyle Home Builders recognizes that planning your move and its timing are very important to you. We make every attempt to meet the targeted delivery date. If there are any changes in this date, you will be notified as soon as possible so that you can adjust your plans accordingly.
Date of Closing – You will be given a firm closing date at your framing walk-through with your Field Manager.
Location of Closing – The closing of your new home typically takes place at an attorney’s office. You should contact your attorney to set a time for closing once your closing date has been confirmed.
Closing Documents – At closing, the documents necessary to convey your new home to you and to close the loan from the mortgage company will be executed and delivered. The principal documents include:
- Deed – The deed conveys the home and lot to you, subject only to permitted exceptions.
- Title Commitment – At or before closing, your attorney will deliver to you a standard form called the ALTA owner’s title insurance commitment. This form ensures merchantable title of your home to you in the amount of the purchase price and subject to the permitted title exceptions that may be described in the Purchase Agreement. Please review the title commitment carefully and if you have any questions, ask your attorney. Within sixty (60) days after the closing, the title company will deliver to you (by mail) a standard ALTA owner’s title insurance policy, ensuring your title to your home in accordance with the commitment you will already have received. The title insurance policy should be kept with your other valuable papers.
- Residential Warranty Company (RWC) Limited Warranty – Click here for a sample copy of the warranty. Please read it thoroughly.
- Promissory Note – The Promissory Note is from you, payable to the lender, in the principal amount of the loan, plus interest, taxes and insurance.
- Deed of Trust – This encumbers your home as security for repayment of the Promissory Note.
In addition to these standard items, the lender, the title company and LifeStyle Home Builders may require other documents to be signed.
Closing Expenses – Certain customary items in connection with the property will be pro-rated to reflect the respective periods that you and LifeStyle Home Builders own the property (for example: taxes and Homeowner Association dues). You will have received a list of these items in your Good Faith Estimate from your lender.
You will be charged for prepaid expenses, any reserves required by the Declaration of Covenants, Conditions, Restrictions, and Easements and insurance premiums. These will be pro-rated to the date of closing.
Pro-rations of general real property taxes and assessments will be based on the current year’s taxes and assessments, or, if they are not yet available, on the taxes and assessments for the prior year. All adjustments and pro-rations at closing will be final.
“The Final Number” – The final cost figure is usually only available near to the actual closing. Although a reasonably close estimate may be determined prior to the date of closing, several of the items included in the final total are subject to last minute adjustments. This is the result of many factors over which the attorney has little or no control. You have the right to review your closing statement (the “HUD 1” statement), prior to settlement.
You will need to bring a cashier’s check or certified funds to settlement. Your closing attorney will tell you to who the check should be made payable. In your planning, be sure to allow time to arrange for and obtain these funds.
Preparation – In preparing for the closing, you should keep the following items in mind:
- Insurance – You will need to obtain and present proof of a homeowner’s policy from your insurance company to your closing attorney. Your insurance agent should know exactly what is needed. We suggest you arrange for this no later than three (3) weeks prior to the expected closing date.
- Utilities – You will need to notify all applicable utility companies of your move so that service is provided in your name. We suggest that you contact these companies well ahead of time to avoid any interruption in service. LifeStyle Home Builders will automatically have utility service removed from its name three (3) days after closing.