Taylor Homes recognizes that timing is vitally important in planning your move and locking in your loan. We can specify an exact delivery date when construction reaches a point at which weather and other factors are unlikely to affect completion of your home. This occurs 45 days before closing. Until then, many factors can influence 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 from your lender, this can affect work progress.
► Change orders signed after the original contract has been completed can add to the schedule.
Date of Closing
The closing, or settlement, takes place shortly after your orientation. Taylor Homes will notify you of the date of closing 45 or more days before the settlement appointment. We set this appointment with at least three day’s notice. Typically, the closing process takes from 45 minutes to an hour.
Location of Closing
The closing on your new home typically takes place at the title company, although it occasionally occurs at the lender’s office. We 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 Taylor Homes may require other documents to be signed. The principal documents typically include the following:
► 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.
► Title Commitment—At or before closing, we will deliver to you a standard form for an Affiliated Land Title Association (ALTA) owner’s title insurance commitment to insure salable 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 contract. Review the title commitment carefully. Discuss any questions with your title company. Within 60 days after the closing, the title company mails a standard ALTA owner’s title insurance policy, insuring you the title to your home in accordance with the commitment you received at closing. Keep the title insurance policy with your other valuable papers.
► Taylor Homes Limited Warranty—We provide a copy of the limited warranty in this manual for your review. Please read it thoroughly.
► Promissory Note—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, or reserves required by your lender and homeowners 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 Number”
The final cost figure is available near to the actual closing. Although a reasonably close estimate may be determined before the date of closing, the proration of several items included is affected by the closing date and cannot be calculated until that date is known.
Plan to bring cash 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:
► Documents—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 before the closing appointment. Although these documents are not negotiable and thousands of home buyers have signed them, you should read them.
► Insurance—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 at least three weeks before the expected closing date.
► Taylor 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.
► Utilities—Taylor Homes will have utility service removed from its name three 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. Utility company phone numbers are provided on the next page to assist you in making these arrangements.