Closing on a new construction home involves several steps, which can vary somewhat depending on local regulations and builder practices. Generally, closing on a new construction home follows the sequence outlined below.

1. Pre-Closing Preparations:

·      Final Walk-Through: Before closing, you'll typically have a final walk-through of the home. This is your chance to inspect the property and ensure that any issues or changes have been addressed and that everything is in accordance with your contract.

·      Builder Punch List: During the walk-through, you may create a punch list of minor repairs or fixes needed. The builder is usually responsible for completing these before closing.

2. Review Closing Documents:

·      Closing Disclosure: You’ll receive a Closing Disclosure document, usually at least three days before closing. This document outlines the final terms of your mortgage, including the loan amount, interest rate, monthly payments, and closing costs. Review it carefully to ensure all details are correct.

·      Settlement Statement: This document details all the financial aspects of the transaction, including the purchase price, deposits, and any adjustments for taxes or utilities.

3. Obtain Final Mortgage Approval:

·      Lender Requirements: Ensure that you’ve met all the lender’s requirements and provided any necessary documentation. Your lender will typically conduct a final verification of your financial status before approving the loan for closing.

4. Prepare for Closing Costs:

·      Funds Transfer: Arrange to have the required funds available for closing costs. This usually involves transferring money from your account to the escrow or closing agent. Closing costs can include fees for the title search, insurance, appraisal, and lender charges.

5. Closing Meeting:

·      Sign Documents: At the closing meeting, you’ll sign a variety of documents, including the mortgage agreement, deed of trust, and any other necessary paperwork.

·      Pay Closing Costs: You’ll provide the funds for closing costs and any remaining down payment, usually in the form of a cashier’s check or wire transfer.

6. Title Transfer:

·      Deed: The seller (or builder) will transfer the title of the property to you by signing the deed. This document is then recorded with the local government to officially make you the owner.

7. Final Steps:

·      Keys and Possession: Once all documents are signed and funds are transferred, you’ll receive the keys to your new home. At this point, possession is officially transferred to you.

·      Homeowner’s Insurance: Make sure you have homeowner’s insurance in place and provide proof to your lender if required.

8. Post-Closing:

·      Utilities and Services: Set up utilities and services in your name, such as water, electricity, and internet.

·      Address Changes: Update your address with the postal service, banks, and other relevant institutions.

Throughout this process, it’s important to stay in close communication with your real estate agent, builder, and lender to ensure everything proceeds smoothly. Each step can involve specific details, so having a knowledgeable team to guide you through the process can be very helpful. If you’re considering a new construction home in the Denver metro area, we’d be happy to help you start the process. Reach out to Metrowest today!