The Critical Path to Closing Escrow

Financing and Loan Approval

Since we are making a substantial commitment by beginning the construction and customization of your home, we want to be assured that financing can be realistically completed in a timely manner. This is why you are required to provide proof of your final loan approval, subject to the appraisal, within 30 days from your Contract Date. You already may be qualified through a lender, and we do not want to restrict your ability to use the lender of your choice. However, we do want to identify any and all potential problems early in the process to assure that your purchase is pleasant, successful, and moves as smoothly as possible. Therefore we require that all buyers get pre-approved through our Preferred Lender. We also reduce the deposit requirements and waive any late closing fees should you not close escrow on time for any reason when financing through our Preferred Lender.

Going through the loan underwriting process and the approval process can be one of the most stressful stages, and we are confident that you will receive the highest level of service with our Preferred Lender. This is why we highly recommend that you seriously consider financing your home with them – we know they rock. See your sales team for more information, or for our Preferred Lender.

If you decide to finance your purchase with another lender - which you are free to do - you and your lender will still be responsible for submitting all information and approvals within the required timelines. This means that you may be required to act as a liaison between your lender and your sales team in the event your lender is unresponsive for any reason. You will also be subject to a $200 per day Late Closing Fee if your lender is not able to close on time for any reason, which does, unfortunately, happen quite often.

PLEASE CONSULT YOUR LENDER PRIOR TO MAKING ANY LARGE PURCHASES OR ENCUMBERING ANY NEW DEBT PRIOR TO CLOSING ESCROW.

In most cases, you will be required to update your information with your lender every 90 days and prior to your scheduled closing date, so be prepared to produce updated bank statements, paystubs, etc. multiple times during the construction of your home and definitely after receiving your 37-Day Notice. You will likely feel like you are being asked to provide the same documents over and over again, but trust us: this is pretty much unavoidable and to be expected. You’ll be signing your closing documents in no time, so don’t let it get you down.

 

37 Day Notice

Nailing down a firm closing date is almost impossible at any point in construction, but in most cases, we are able to establish your Closing Date after your cabinets have been installed. However, the project manager has the ultimate authority to set your closing date based on when they expect to receive the Certificate of Occupancy from the city, which is what allows your home to be legally occupied. In all cases, the project manager will notify your sales team when he is reasonably certain that your home will be ready for you in 37 days, which is just one month plus a week. In reality, your home should be completed in 30 days, but we have built in an extra week just to make sure we are able to deliver to your new home in turnkey condition. You’re about to enter into a long-term relationship with your new home, and while you will likely be anxious to move in as soon as possible, waiting one additional week to allow us the time to tie up any loose ends is definitely worth it.

After receiving the “go-ahead” from the project manager your sales team will issue the 37-Day Notice to you, your lender, and the escrow officer. The 37-Day Notice will establish your Home Orientation and target Close Date. It will also advise your lender to order your first appraisal* and to begin making any final preparations to close escrow. The escrow officer will also be notified so that they know when they should expect to receive your loan documents and close escrow.

As we mentioned in the "Your Estimated Closing Date" section, building your new home is an incredibly complex process, and while we will do everything in our power to meet the close date we establish with your 37-Day Notice there is still a chance that your close date could shift. That is why we encourage you not to schedule moving vans or do anything to put yourself in a position where you are without housing if you are not able to move in on that exact day. Please keep in mind that Ryder Homes is not legally obligated to meet your scheduled Closing Date, and the last thing we would want is for you to be put in a difficult situation because there was no margin for error.

Buyer Responsibilities

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Utilities

You’ll need to contact the various utility companies in your particular area so that you can minimize any delays in service once you have moved in. The appropriate names, addresses, and phone numbers for the utility companies in your area will be provided by your sales team. Also, please make a note of your new home address, which will be required to order and set up all utilities.

 

THE APPROPRIATE NAMES, ADDRESSES, AND PHONE NUMBERS FOR THE UTILITY COMPANIES IN YOUR AREA WILL BE PROVIDED BY YOUR SALES TEAM. 

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Insurance

If you are financing your purchase your lender will likely require you to obtain a Homeowner Insurance Policy covering your new home. A certificate of insurance is required by the escrow company at least five (5) working days prior to the close of escrow. The policy must show the lender, if any, as the "Loss Payee."

HOMEOWNER INSURANCE POLICY: "CERTIFICATE OF INSURANCE" NEEDED BY THE TITLE AGENCY AT LEAST FIVE (5) WORKING DAYS PRIOR TO CLOSING. 

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Cable/Internet

Please check for the name of the cable service that serves your particular area. Normally you should allow anywhere from 7-10 days for the connection after requesting service, weekends and holidays excepted.

Closing Escrow

After your Home Orientation, you will visit your escrow officer at the title company to sign all of the necessary documents, including loan documents from your lender, to transfer ownership from Ryder Homes to you (woohoo!). Your Title Company will set up this appointment when they have received all of the necessary documents from you and your lender. An estimate of closing costs should have been predetermined, and you will be expected to have this sum available in the form of a bank wire, Cashier’s Check, or Certified Check made payable to the title company. Your sales team can assist you in providing this information if necessary. After signing it will typically take 48 hours for the loan funds to reach escrow and another 24 hours for the loan and grant deed to be recorded.

You can expect to receive your recorded deed 4 to 6 weeks after the close of escrow. Promptly following the recording of the deed, the title agency prepares a "Title Insurance Policy," which guarantees you a clear title, i.e., no encumbrances, liens, etc., on your property other than those disclosed in the title policy. You will receive your title insurance policy anywhere from 2 to 3 weeks following the close of escrow.

THE CLOSING PROCESS WILL TAKE APPROXIMATELY FOUR (4) DAYS:

  • DAY 1 - SIGN LOAN DOCUMENTS AT ESCROW AND DEPOSIT YOUR CASHIER’S CHECK
  • DAY 2 - ESCROW SENDS DOCUMENTS BACK TO LENDER
  • DAY 3 - LENDER SENDS LOAN FUNDS TO ESCROW
  • DAY 4 - LOAN AND GRANT DEED ARE RECORDED.

Checklist for Closing

  1. Have your insurance agent provide the Title Company with your insurance policy information. In most cases, the insurance premium will be paid in escrow.
  2. Contact your lender two weeks prior to your walk through and request that the loan documents be sent to the Title Company.
  3. Bring your driver’s license or passport to your appointment with the Title Company.
  4. Also, bring a cashier’s check for the settlement costs drawn from a reputable and recognizable bank.
  5. Arrange to have the water and power services transferred to your name when the escrow has closed.

RYDER HOMES WILL ONLY RELEASE THE KEYS TO YOUR NEW HOME AFTER RECORDATION OF THE DEED AND SIGNING OF THE ACCEPTANCE LETTER. 

For the mutual protection of both of you, the buyer and Ryder Homes, we have established the following policy governing actual occupancy of your new home:

  • All purchasers named in the contract must participate in the Home Orientation and acknowledge their comments on the Acceptance Letter. Any purchaser named in the contract that is not able to attend for any reason must sign a Power of Attorney allowing the present purchaser(s) to sign on their behalf.
  • All necessary mortgage papers, notes, and other required forms must be executed by all of the buyers.
  • All funds due to Ryder Homes, if any, must be paid in full.
  • The property and home must have final clearance by all concerned inspection agencies and receive a Certificate of Occupancy from the City. Ryder Homes will arrange for the final inspection.