When you buy a new construction home, the process can be an exciting yet complex journey. In the new home construction process, closing day is arguably the most important step as you prepare to move in.
For homeowners, when the final home walkthrough is approved, the new construction home closing process officially begins, marking the transition from construction site to move-in-ready home.
New Home Closing Process: What to Expect
If it’s your first time purchasing a newly built home, the new construction home closing process may feel unfamiliar, but knowing what to expect can help prepare you with confidence. We’ll walk you through a few important phases that ensure your home is ready for move-in.
Final Paperwork and Pre-Closing Details
Before you close, there are a few pre-closing steps that take place behind the scenes. If you finance your home through a mortgage, then your mortgage lender will need to complete a final underwriting review. You’ll receive a Closing Disclosure before the closing date, which outlines your loan’s details, terms, and costs. Use this time to review all the information before signing.
Simultaneously, the title company will conduct a title search to confirm there are no liens or legal issues with the property. Your lender usually requires title insurance, which protects you from potential future claims to the property.
The builder will provide final documents, including warranty information, service contacts, appliance manuals, and homeowner maintenance guidelines. As a crucial step in the new construction home closing process, carefully review all documents to ensure a smooth transition to closing day.
Closing Day and Key Hand-Off
Closing day is the official moment when ownership of the home transfers from the builder to you. You will meet with the closing agent (usually at a title company or attorney’s office) to sign all legal documents, including your mortgage agreement, promissory note, and deed. You will also be responsible for paying any outstanding closing costs or fees, which may be wired in advance or brought as a certified check.
Once all the documents are signed and the funds have been successfully transferred, the sale is recorded within the county, and you officially become the legal owner of the property. This milestone is marked by the symbolic moment of the key hand-off, your first tangible step into homeownership, and the beginning of life in your brand-new space.
Occupancy Certificate
Now that the home is legally yours, the last step before you move in is receiving the Certificate of Occupancy (CO). This document confirms that the home has passed final inspections and complies with local building codes, zoning laws, and safety standards. It’s one of the final and most critical steps in the new construction home closing process. Issued by your local municipality, buyers need to confirm that the certificate has been issued before moving in, as you won’t be permitted to occupy the home without it.
Usually, builders will not schedule a move-in date until the Certificate of Occupancy is approved. However, final inspections can occasionally cause delays. Staying in close communication with your builder ensures this final checkpoint in the new construction home closing process goes smoothly, so the transition from buyer to homeowner will flow without interruption.
Your Home is Complete and Ready for Move-In!
The new construction home closing process marks the final stretch of this exciting home-buying journey. After months of planning, building, designing, and all the steps in between, closing day represents your vision finally becoming a reality.
At Brock Built, we take homeownership to the next level. If you’re ready to start your journey to building a new home, we’re here to help you every step of the way. Contact us today to learn more about our available communities and opportunities, and take the first step toward crafting your dream home.
FAQs
How does closing work on a new build?
Closing on a new construction home follows a similar process to a resale, but it typically occurs once construction is complete and the home passes final inspections. After your loan is approved and the title is cleared, you’ll attend a closing appointment to sign all legal documents. This includes your mortgage agreement, title paperwork, and builder documents. The home is officially yours once everything is signed and funds are transferred.
Who pays closing costs on a new build?
In most cases, the buyer is responsible for most closing costs, typically ranging from 2% to 5% of the purchase price. However, many builders offer closing cost incentives, especially if you use their preferred lender or title company. It’s always worth asking about available promotions or negotiating these costs as part of your contract.
Can you move in on closing day for new construction?
If the home has received a Certificate of Occupancy, you can usually move in on closing day. This document confirms that the house is safe and legally approved for occupancy. Depending on their process, some builders may schedule key hand-off or move-in access later that same day or the next morning. Be sure to review the specific terms of your purchase contract and confirm move-in timing with your builder in advance.