When will you finally get the keys to your new construction home?
Buying a newly built home is an exciting journey, but one of the biggest questions on every buyer’s mind is: When do you close on a new construction home? Unlike resale properties, new construction homes have unique timelines, which can sometimes feel uncertain. But don’t worry; we’ll break down the process so you know exactly when you can expect to close and move in.
Understanding the Closing Timeline for a New Construction Home
The closing timeline for a new construction home varies depending on the build type, construction progress, and lender requirements. Generally, you can expect to close on your home at one of these key stages:
1. Pre-Sold Homes (To-Be-Built)
If you purchase a home before construction begins, you typically look at a closing date 6 to 12 months later, depending on the builder’s timeline. This option allows for the most customization since you can choose finishes, layouts, and upgrades. However, because the home is being built from scratch, delays may occur due to weather conditions, labor shortages, or supply chain disruptions. During this period, your lender will monitor your financial status, and it’s essential to avoid making any significant financial decisions that could impact your mortgage approval. As your home nears completion, your lender will finalize the mortgage, and you’ll move toward closing.
2. Homes Under Construction
If you buy a home already under construction, your closing date will usually be sooner, within 3 to 6 months. These homes are in various stages of completion, meaning that some design choices may already be made, limiting customization options. However, they offer a shorter waiting period compared to pre-sold homes. Since construction is already underway, the most significant factor affecting the closing timeline will be how smoothly the remaining work progresses. Any delays in installing final fixtures, appliances, or inspections could impact your expected closing date.
3. Quick Move-In Homes
These homes are either wholly built or near completion when you purchase them. Like a resale home, you can close within 30 to 60 days. Quick move-in homes are perfect for buyers who need to move in immediately and don’t require customization. The primary advantage is that you don’t have to wait months for construction to finish. However, you should still conduct a final walkthrough and home inspection to ensure no lingering construction issues need to be addressed before closing.
Factors That Can Affect Your Closing Date
Even with a planned timeline, several factors can influence your closing date, including:
- Construction Delays: Weather conditions, supply chain disruptions, and labor shortages can delay the construction process, pushing back your closing date.
- Inspection & Permits: Before you can close, the home must pass a series of inspections, including electrical, plumbing, structural, and final walkthrough inspections. If any issues arise, they must be addressed before moving forward.
- Financing Process: Your lender must complete a home appraisal and underwriting process before approving the loan. Any discrepancies between the home’s appraised value and the loan amount could lead to delays.
- Walkthrough & Punch List Fixes: Builders conduct a final walkthrough to ensure everything is up to standard. If minor issues arise, such as paint touch-ups or appliance installation delays, these must be resolved before closing can proceed.
Steps Leading to Closing Day
- Final Walkthrough & Inspection – A few days before closing, you’ll complete a final walkthrough with the builder. This is your opportunity to ensure that all agreed-upon features and finishes are in place and that any necessary repairs have been completed. Make a list of anything that needs attention before finalizing the purchase.
- Loan Approval & Funding – Your lender, like Tritium Capital, will verify your financial documents, employment status, and credit standing before issuing the funds for your mortgage. It’s crucial not to make significant financial changes, like opening new credit accounts, as this can impact your approval.
- Title & Escrow Process – The title company will ensure the home has a clear title, meaning no outstanding liens or claims exist against it. Escrow will handle the collection and distribution of funds, ensuring everything is in order before closing.
- Closing Disclosure Review – You will receive a Closing Disclosure at least three days before closing. This document outlines your final loan terms, interest rate, monthly payments, and closing costs. Carefully review it to ensure all details are correct.
- Sign Closing Documents – On closing day, you’ll sign all required paperwork, including your mortgage agreement and title documents. The home is officially yours once the funds are transferred and the builder hands over the keys!
FAQs About Closing on a New Construction Home
1. Can I lock in my mortgage rate before completing my home?
Yes! Many lenders offer extended rate locks for new construction homes, allowing you to secure a favorable interest rate even if your home is still being built. Depending on the lender, rate locks can last up to 12 months, protecting you from market fluctuations. However, some extended rate lock programs require additional fees, so ask your lender for details.
2. What happens if construction delays push my closing date?
Your builder and lender will work together to adjust the timeline, but staying proactive is essential. If construction is delayed, you may need to extend your mortgage rate lock, update your financial documents, or modify your lease agreement if renting. Stay in close contact with your builder for real-time updates on your home’s progress.
3. Do I need a home inspection for a new construction home?
Absolutely! Even brand-new homes can have issues. A professional home inspection ensures everything is built correctly and up to code. Common problems found in new homes include improper electrical wiring, plumbing leaks, and HVAC system concerns. Inspecting before closing gives the builder time to fix any defects before you take ownership.
4. What closing costs should I expect?
Typical closing costs for a new construction home include loan origination fees, title insurance, property taxes, homeowner’s association (HOA), and escrow fees. Some builders offer incentives, such as covering a portion of your closing costs if you use their preferred lender. Always ask about potential discounts when negotiating your purchase.
5. Can I move in right after closing?
Yes! Once the closing is complete and all funds are transferred, you’ll receive your keys and can move in immediately. However, doing one last walkthrough on the closing day is a good idea to ensure everything is in order and nothing was overlooked.
Ready to Close on Your Dream Home?
If you’re looking for the perfect new construction home in Fort Lauderdale, Marina Landings offers stunning modern residences with unbeatable amenities. Our homes are built with quality, style, and convenience in mind, ensuring a seamless move-in process.
Don’t wait! Schedule a tour today, and let us help you find your dream home at Marina Landings. Contact us now to get started!
