It's helpful to know the process when you're considering building a new home. There are so many decisions to be made, it can be overwhelming. Here is a simple time line that will apply in most situations. Keep in mind that it will vary from builder to builder. Some builders want the exterior paint colors at contract, while some want the exterior door chosen. The amount of deposit and extra fees will differ, as will lot premium fees and standard features per community.
Also, remember builders offer incentives which can change monthly, weekly or even daily. It is important to verify how long special pricing will last so you can take advantage of it if you are close to writing a contract.
Time Line - Contract to Close and Beyond
1. Contract - When you’re ready to write a contract, you must choose the Floor Plan, Elevation, Lot, Garage side, and any structural options that the Builder requires. Be prepared to write a check for a deposit. Builders will normally allow a Buyer extra time to give the entire deposit, but they want it when construction begins.
2. Balance of deposit at start of construction. As of June 2009 in Clay, St. Johns and Duval Counties, this process takes about 30-45 days. It takes a couple of weeks to process the contract, prepare the building site, and a couple of weeks to apply for and receive the building permit.
3. Make loan application within __ days of Contract. Usually this is 5 days. Builders may have incentives to work with their mortgage company, such as paying a % of closing costs to all closing costs. In Florida, you can choose to work with any lender, but Builders’ Mortgage Companies know this and they are very competitive.


4. Design Center Selections - 30-45 days after Contract. Many Design Centers offer an evening where Buyers may go and view the selections before their appointment. Buyers schedule one or two appointments, depending on the size of the house and the Design Center process.
5. Loan Decision – In Florida, you do not have to decide which loan you are going to choose until right before you close. You can change your mind as to whether you use the Builder’s Mortgage affiliate or anyone else. You just have to make that decision within enough time to be ready for the date of settlement. Allow 30-45 days before settlement to process your loan.
6. Lock Interest Rate – You may pay to lock your rate during the building period if they are really low, or float until close to the settlement date. Discuss this with your lender.
7. Slab Pour. After the lot is prepared, plumbing is roughed in, and the slab is poured. 95+% of all homes in Florida are a concrete slab. A private inspector may be hired to inspect the slab.
8. Pre-drywall Walk through. The purpose of this walk is to confirm that electrical and structural options have been placed as selected. A private inspector may be hired to inspect the construction.
9. Final Walk/Inspections. This walk is to inspect the workmanship, the systems and the entire house. Even cosmetic imperfections must be corrected within standard workmanship standards. The Builder explains all the systems of the house to the new owners. For long distance buyers, I do this walk and when the owners come, the Builder goes through the house to explain everything to them. You also have the option of hiring a private inspector to inspect the house.
10. Transfer utilities into Buyer's name to begin the day of closing. Arrange for Home owner's insurance. Arrange for cross connection inspection if using reclaimed water in Clay County.

11. Settlement/Closing – Most builders will notify you about 30 days before settlement in a letter. Usually when the cabinets go in, settlement/closing is about 30 days away.
12. Warranty – Builders have different warranties. Many warrant everything the first year, including cosmetic items. The second year they warrant the mechanical systems, or ‘everything behind the walls.’ There is a 10 year structural warranty on most homes.
Check with your Builder to see what their warranty is and when they do their walks,
Many Builders ask the homeowner to make a list of small items and they will repair those once, at the time of the second walk, usually around 11 months after settlement. Of course, important items will be addressed immediately.
Use this list and check with your Builder for their process. Every Builder has their particular way of doing business, so please know that this is a general outline.
Happy Building and may you find the home of your dreams!

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