Posting to an old thread
Recently on this forum I read a thread about closing costs. There was a lot of discussion concerning money paid on new construction purchases if you don't settle within a specified period of time. As we're approaching the day we want to commit to a new construction in The Villages and we asked our Agent:
Once you commit to a new construction purchase you have 30 days to close. There is nothing available for contingent to sell another property or obtain financing. Closing can be delayed past the 30 day period, by paying $40.00 per day. The total cost for the 30 day extension is $1,200.00. I didn't think to ask what happens on the 61st day.
In a nutshell, when you purchase new construction you can have the funds to pay cash. Sadly, we do not, and need to make sure we don't commit to the purchase until we are certain we can obtain a loan in 30 days.
We will now begin working with banks. Even if it takes a few days past the 30, if the banks costs and rates are lower, it may be to our advantage to pay $40.00 per day.
Does anyone have experience with new construction and how likely it is for the banks to close within 30 days of making the commitment? In our state you have to do a pre-qualification prior to making an offer. We may get the pre-qualification process completed before we commit to a purchase in The Villages.
We have found the fees and costs to be openly disclosed. Now it's up to us to decide if we are willing to accept the terms to live in The Villages full time in 4 years.
Yup, in a heart beat!!!
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