Closed New Construction on Time – Timeline Included

[Newlywed Homebuyers]

We closed!! We watched it from the ground up and we closed on our exact date with a mortgage on a new construction significantly cheaper than our rent. This forum helped me tremendously. My timeline is below. Open to any questions.

Dec. 1 – Homebuyers Workshop
Dec. 4 – Received NACA ID
Dec 11 – Everything uploaded
Jan 9 – Intake Meeting Uploaded other documented listed as Homeownership Ready & sent out renter/income verifications
It was at this time we thought it was gonna take too long because they needed by husband’s 30 day employment verification because he started a new job, but for a new construction it needed to be started 6 months in advance. 
We decided to go back to NACA & our builder cancelled our contract per NACA but said they’d keep building and if NACA fell through they’d just put it back on the market. They gave us 90 days to submit a new Purchase Contract. 
Feb 15 Signed Verification Sheets
Feb 15-26 Submitted lots of the paperwork & tons of back & forth 
Feb 27th – Submitted for approval
Mar 4 Given conditions, submitted them same day. 
Mar 8 Qualified
Mar 9 Volunteered at NACA Homebuyers Workshop (YOU MUST VOLUNTEER BEFORE YOU ARE QUALIFIED or sign up to volunteer beforehand)
Mar 14 Purchase Workshop
Mar 15 Submitted P&S Contract & Locked in our rate 
Mar 23 submitted for credit access
Between 23-4/3 went back & forth with underwriting. Our MC escalated to regionals. They’re on your side
Mar 28 Initial Appraisal Conducted – $5,000
over purchase price
April 4 signed bank application
April 19 Bank Conditions
April 20 Conditions Met
April 29th Construction walkthrough scheduled for end of July
May 15 Got HOI
May 28th Switched closing coordinators without notice
May 31st House completion CO sent and final appraisal ordered
June 5 Appraisal Done
June 13 UW CTC
June 13 Asked for page 5 signature for CTC
June 28 Final walkthrough
July 7 CTC – Final
July 9 – cD sent
July 10 – updated CD
July 15 – Closing

I closed on my exact date.

[Nelsont]

That’s awesome! Just out of curiosity is your timeline reversed towards the end because you built a house? I got my closing disclosure last week with a close date of 7/18 but I still haven’t received my ctc. My MC said today that he expects the CTC tomorrow and ctc final Wednesday to close Thursday.

[Newlywed Homebuyers]

No, they mailed out the closing the same day or day after I received CTC final.

We set my close date back when we signed our purchase contract.

[Nelsont]

Right. I set had my close date set for 7/11 when I signed my contract. I was delayed because the plumber canceled twice each time on the day he was supposed to arrive. But my MC rushed everything to try to meet the contract deadline. I got my CD emailed to me. The only thing I got in the mail was the loan estimate which looks like the CD but doesn’t have the date on it.

[Klassy]

Congrats and thank you for sharing. Any particular reason why you had two appraisals?

[Newlywed Homebuyers]

With a new construction they required an appraisal at time of contract signing, and then another when the house is 100% completed

[nikk129]

hi, so you had a contract with a new builder prior to your naca qualification?

[Nelsont]

There are 3 levels of approvals. Qualification, Credit Access, and Clear to Close. You must be qualified before entering into a contract. Newlywed was qualified on March 8 and entered into a contract on March 15.

Credit access is when you’ve entered into a contract and the NACA underwriter takes another look at your finances and determines 1. if you are still on track and 2. if they meet the criteria to buy this specific house (every house will be different).

Once you are credit access approved you will sign your bank application and the bank will review your file once again and determine whether or not you can be approved for the loan. If you are you will be given a closing disclosure and then a clear to close statement. These happen generally from what I’ve seen between 2 weeks prior to closing and 1 day prior to closing. In my case I did not get my clear to close until after business hours the night before settlement.

• This reply was modified 1 year, 4 months ago by TTrumble.

[Klassy]

@Newlywed Homebuyers I’m also buying new construction… I’m somewhat concerned my closing will be delayed as a result of the appraisal process. How do you/NACA define 100% complete? I’m under the impression it means when the home has all appliances, utilities connected, and all major work is finished. My closing coordinator seems to believe 100% complete is after I’ve done my final walk through.

[Nelsont]

I didn’t buy new construction but I’m going to go with your CC on this one. Your final walkthrough is your chance to approve the sale and if anything needs to get done you can say so. Basically you don’t close if you don’t approve so I would say it’s viewed as the last hurdle before completion.

[CMA2013]

I am in the process of buying new construction. You have to give NACA/BoA your official closing date that you receive from your builder. They will do the final appraisal from that.

[DCL822]

@Klassy I wanted to follow up with you regarding your appraisal since I am in the same situation. When did you have your appraisal done and did that delay your closing? I was told that the appraisal has to be done when the house is complete, but I can’t get a definite answer as to what NACA/BOA defines as “complete”. Thanks!

[2BLESSED]

@Klassy I am in the same situation. I signed my contract in September and my house won’t be ready until 12/20. I have not had an appraisal done and was told they will do it when the house is complete. I receive my initial Loan approval from BOA. I am just waiting for my house to be complete and then the bank will do the appraisal. I am in California if that makes a difference on how they are doing things.

[Newlywed Homebuyers]

@DCK822 They required 2 appraisals. One with the signed contract and one when the house was more than 90% completed.

[DCL822]

@NewlywedHomebuyers Thank you for the clarification. I was never notified by my MC or BOA that an initial appraisal had to be done, so it was never completed. My home is now 90% done, so I will ask my MC again if the appraisal can be ordered. He initially told me that the home had to be 100% complete, which had me worried about missing my closing date of October 30th.

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