Tagged: per diem new construction delay
January 13, 2020 at 12:54 am #64503
Can you olease share your experience? Timeline? Who paid what? Per diem? Thank you.January 13, 2020 at 1:27 am #64504BakerTheBakerMember
We’re buying new construction. There’s no per diem, and delivery is about 6 months from P&S, but you need to have financing usually within 45 days (that’s a Property Specific Letter in NACA terms.) Our builder said they’d adjust the contract so the earnest money would match NACA guidelines, and the deposit would match the amount of our MRF. Some builders will do more, some will do less.January 13, 2020 at 6:29 am #64509NelsontMember
@TTrumble has mentioned several times per diem is strongly discouraged if you can avoid it. You should also have a clause in your contract that states you get back your earnest money and all per diem if the loan fails to close.January 13, 2020 at 11:24 pm #64562
@JR0312 We just closed today received and received our keys on a new construction home. Our P&S was back in March and home was completed on 12/1/19. It took some time for us to get the CTC. Primarily delays with the bank and a few errors here and there with all of the parties involved. The builder gave us $5,000 in closing cost which we used to buy down our interest rate. We paid to the builder Earnest Money Deposit and Option Fees Payment (payment for the upgrades we selected at the design center). We went to the design center in May of 2019. Our contract did have a per diem in it, and we didn’t close on a time to the seller wanted to follow through on the per diem. However, our realtor was able to negotiate and although we closed late we were fortunate enough to have the entire per diem waived. As @Nelsont mentioned NACA recommends negotiating the per diem out or add in some language that protects yourself because delays often times may not be a result of the buyer (this was our situation). Also, Bank of America has large workload and are not closing loans as fast as prior years.
Our EMD and Options fees payment went to prepaids and other fees that need to be paid at closing. Even after all that we received a check back from closing. So that was amazing!
We are happy about our experience. I mean we got our new construction home lol :). Was able to choose all the upgrades we desired, saw our home built from grass all the way to completion and received a check back at closing. However; the delays in processing of our information were discouraging along with limited transparency in progress the bank is actually making with your file. A lot of times we felt like we were submitting the same information 6 or 7 times, and felt that sometimes a conversation would clarify things a lot quicker. We are excited and happy to be done, but it was rough for us. Also we were first time homebuyers, and learned that some of the inefficiencies we encountered were normal for this industry.January 14, 2020 at 6:05 am #64569KristijayParticipant
@Icovington Which builder did you use if you dont mind sharing?January 14, 2020 at 6:09 am #64570January 14, 2020 at 9:25 am #64578Newlywed HomebuyersMember
I closed in July with my new construction. The builder didn’t pay anything. From intake appt to closing was about 6 months because that’s how long it took to be built. Chose my upgrades and offered about 10K less than purchase price and they accepted.January 14, 2020 at 9:51 am #64580KristijayParticipant
Oooh. Thanks for that little tidbit. My builder is regional and they also aren’t offering anything at the moment, but I’m working on an angle to get something. My NACA realtor isnt really doing much on that front, but I can advocate for myself.January 14, 2020 at 9:53 am #64581
Yes our realtor had a relationship with sales rep so we got the $5K in closing and $15K towards design center upgradesJanuary 14, 2020 at 9:58 am #64582
Oh whoops also got a free washer dryer as wellJanuary 14, 2020 at 11:15 am #64589
Thank you all for the helpful information. Just put my earnest deposit down yesterday. The price of the home has already been reduced by 20k, includes most appliances and window coverings, so the builder is not offering anymore incentives or contriburing any money. We have until 2/27 to close before per diem kicks in. Hopefully this all works out!January 14, 2020 at 3:13 pm #64615msm407MemberJanuary 14, 2020 at 3:18 pm #64618
How long did escrow take for you guys? I have about 46 days.January 14, 2020 at 4:13 pm #64625January 14, 2020 at 4:55 pm #64634Our1sthomeMember
Question for the new builders that had a 6 month build time, did BofA pull your credit twice? If so, how long after the second pull did you get your CTC?
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