The process of building a new home just got more complicated. New escrow closing regulations make building and closing on a new home even more tricky than it was before. It is even more important than ever to get all the information to your lender in a timely manner. These new regulations make the closing portion of the real estate transaction much more prone to delay. The Buyer needs a completed, final closing cost sheet (HUD form) 3 days prior to closing. The slightest change in the HUD form can delay the final close.
As a new construction listing agent, it is very common for Buyers to have overages from their selections when building a new house. Two important factors make this a dangerous slice of procrastination: 1.) appraisers have been less than generous with property values stagnant at best and 2.) the change in purchase price can create a low appraisal situation and easily delay the closing by affecting the final closing documents.
The moral of the story is to deal with an experienced Builder like Sherwood Homes or Lane Building Corporation www.SherwoodHomesOmaha.com . A home builder with experience (over 40 years in the case of Sherwood Homes, Inc.) can make the Home Buyer aware ahead of time of otherwise unforeseen expenses.
Wells Fargo has a thorough breakdown of the changes in regulations. (click for the complete breakdown)
Low appraisals have become more common in the current real estate market as noted in this recent Realtor.org article
Posted In: New Construction Building a Home