New Construction Contract Fell Through

Home Forums Purchase Program New Construction Contract Fell Through

Viewing 6 posts - 16 through 21 (of 21 total)
  • Author
    Posts
  • #66239
    Nelsont
    Member

    Oh that’s interesting. I had my effective date as the date scheduled on my contract. Closing was delayed a week and after I got my CTC I got got one of those automated emails from the insurance company that the policy effective date was changed to my new close date. The bank made the change on my behalf. Now it seems either they don’t do that anymore or there’s no consistency ?

    #66267
    Kristijay
    Participant

    @Keja1914 Congrats! I’m actually trying to figure out the HOI lender condition right now. I’m also building with True Homes with a estimated date of completion around September/October. At what point were you able to establish your HOI? I tried to go through my current car insurance company, but they are asking for information from my mortgage lender and my underwriter is saying that I will need to wait until my house is nearer to closing. What was your experience? Any advice?

    #66268
    Kristijay
    Participant

    @Nelsont The process for new construction is quite different from purchasing an existing home. With new construction your closing is not only estimated, but several months out from contract signing. For True Homes, which both myself and @Keja1914 built with, the contract has an estimated completion of 5-8 months with no date given. Many things can change between contract and closing with new construction. As a result, your home may be completed earlier or later than anticipated necessitating a need to change the effective date of your HOI. It’s not really about being inconsistent, it’s just a difference in circumstances between purchasing new construction and an existing home.

    #66269
    Nelsont
    Member

    Right. But the point is I put my policy effective date on the wrong day and the bank didn’t say anything and just changed it themselves. I didn’t get any condition. It would be like if you put in September 9 and the house wasn’t ready until October 1 and the bank or the insurance company didn’t care.

    #66275
    Keja1914
    Member

    So I purchased my policy in advance, and set a future effective date based on what the builder stated would be the possible closing date. Once the Certificate of occupancy was issued and the house was about done, I then did an effective date change to get it closer to what I thought it would be.The challenge came when I was waiting on he appraisal and NACA to set the closing date. I got the final date 2 days prior submitted to my Insurance company got a LOE sent it to NACA but because they had the old dec page with the wrong date they were going to reschedule it but luckily I was able to get it changed on my closing day, and get an updated dec page with the right date.

    #66280
    Keja1914
    Member

    I just had my insurance carrier input enough information to generate the quote and get it as close to my loan amount as they could and provide me with coverage that was close to what I needed.

Viewing 6 posts - 16 through 21 (of 21 total)
  • You must be logged in to reply to this topic.