9. Closing on Your Home
Lichty Brothers Homes recognizes that timing is vitally important in planning your move and locking your loan. We can specify an exact delivery date when construction reaches a point where weather and other factors are unlikely to affect completion of your home. This occurs no less than thirty days prior to closing. Until then, many factors can impact the schedule.
- Weather can delay getting the foundation in and can affect framing, roofing, and exterior finish.
- Material shortages and labor strikes may also affect the construction schedule.
- If you are delayed in responding to a request by your lender, this can affect work progress.
- Change orders signed after the original Purchase Agreement has been completed can add to the schedule.
The closing, or settlement, takes place shortly after your orientation. Lichty Brothers Homes will notify you of the date of closing 30 or more days prior to the settlement appointment. We set this appointment with at least three days notice. Typically, the closing process takes from 45 minutes to an hour.
The closing on your new home typically takes place at the real estate attorney’s office, although it occasionally occurs at the office of the lender. Your agent will confirm the location with you when we set the appointment.
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. In addition to these standard items, the lender, the title company, and Lichty Brothers Homes may require other documents to be signed. The principal documents typically include
General Warranty Deed
The General Warranty Deed conveys the home and lot to you, subject only to permitted exceptions. This does not apply if you already own the lot.
At or before closing, we will deliver to you a standard form ALTA owner’s title insurance commitment, committing to insure merchantable title of your home to you in the amount of the purchase price, subject to the permitted title exceptions that may be described in the purchase agreement. Review the title commitment carefully. If you have any questions, ask your title company. Within 60 days after the closing, the title company mails a standard ALTA owner’s title insurance policy, insuring you title to your home in accordance with the commitment you received at the closing. The title insurance policy should be kept with your other valuable papers.
Lichty Brothers Homes limited warranty
We provide a copy of the limited warranty in this manual for your review. Please read it thoroughly. Your limited warranty goes into effect on the date of closing.
The Promissory Note is from you, payable to the lender in the principal amount of the loan, plus interest. One twelfth of your annual taxes and homeowner’s insurance will be added to the principal and interest payment to determine your total monthly payment.
Deed of Trust
This encumbers your home as security for repayment of the Promissory Note.
Certain customary items in connection with the property will be prorated to the date of closing such as prepaid expenses, reserves required by your lender and homeowner’s association, if applicable. Prorations of general real property taxes and assessments will be based on the current year’s taxes and assessments, or if they are unavailable, on the taxes and assessments for the prior year.
The final cost figure is available near the actual closing date. Although a reasonably close estimate may be determined prior to the date of closing, the proration of several items included are affected by the closing date and cannot be calculated until that date in known.
Plan to bring personal check or certified funds (made out to yourself, which you will endorse at the closing) to the closing table. In your planning, be sure to allow time to arrange for and obtain these funds. In addition, please keep the following items in mind.
The Real Estate Settlement Procedures Act (RESPA) provides you with many protections. Under this law you can review the settlement page that lists costs you are paying at closing one day prior to the appointment. Although these documents are not negotiable and thousands of homebuyers have signed them, you should read them before the closing.
You need to provide proof of a homeowner’s policy from your insurance company. Your insurance agent should know exactly what is needed. We suggest you arrange for this no later than three weeks prior to the expected closing date.
Lichty Brothers Homes or Lender Issues
The title company is not authorized to negotiate or make representations on behalf of any of the parties involved in the closing. Therefore, please discuss any questions, agreements, or other details directly with us or your lender in advance of the closing.
Lichty Brothers Homes will have utility service removed from its name two days after closing. 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. You should receive a letter from Lichty Brothers office indicating who your utility providers are.
For your convienience, you may wish to download our complementary Utility and Community Services form, available here (19kb PDF), to keep track of activating your utility providers and activation.