Jackie, Home Buyer in Fort Collins, CO

We just signed a purchase agreement in Trailhead, with D.R. Horton, how much are closing costs? If our house is in the framing stage, when is closing?

Asked by Jackie, Fort Collins, CO Sun Aug 25, 2013

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6
Sally Grenier, Agent, Boulder, CO
Mon Aug 26, 2013
BEST ANSWER
I assume before you started this process you were pre-qualified with a lender?? The lender should have reviewed figures with you, and should have given you a "Good Faith Estimate" (or GFE)?

Is the builder giving you an incentive to use their lender? If so, you absolutely want to see an estimate of their closing costs. Most builders will dangle an incentive in front of buyers (like $X paid toward closing costs or for upgrades). BUT...then they inflate those closing costs quite a bit. If I were you, I'd go back to whatever lender you were dealing with and get that GFE, and if it's the builder's lender, I'd go to another lender and get a GFE from them.

As far as completion date....The sales person at the builder should have explained how long it will take to have your home completed.

Sounds like you're not being represented by a Realtor. This is why I always tell Buyers that it's good to have a Realtor represent you as a Buyer's Agent ... even with new construction. The builder is looking out for their best interests, NOT yours.
1 vote
Sally Grenier, Agent, Boulder, CO
Mon Aug 26, 2013
Thanks for the clarification. With cash deals, you will have minimal closing costs. My guess is somewhere between $500-$1000. You'll have to pay title closing fees, recording fees, tax cert. fee, plus a prorated amount for taxes & HOA fees, etc. Some HOAs have high fees so you probably want to look into this so there are no surprises at the closing table. Hope this helps. And congratulations on your new home! Enjoy! :-)
1 vote
Thank you! I really appreciate your informative answers!!
Flag Mon Aug 26, 2013
Mary E Rober…, Agent, Fort Collins, CO
Sun Aug 25, 2013
You should ask your agent and your lender. If you don't have one, and only worked with Horton, you need to go in there and find out. What does the purchase agreement say? What does your Good Faith Estimate say from your lender? These are answers you should have had before signing anyhting.
Good luck!
1 vote
Allison Klein, Agent, Fort Collins, CO
Wed Sep 18, 2013
When buying new construction it is best to use what is called a buyer's agent. The people working at the model homes are working for the builder trying to get the builder the most money. Many times there can be many issues that can arise in new construction that you as a consumer may just not be aware of and that a local buyers agent would be able to help you out with. Not sure if you went this route or are just dealing with the people that work for the builder? It doesn't cost you anything and the buyers agent works for your best interests not the builders.
0 votes
Jackie, Home Buyer, Fort Collins, CO
Mon Aug 26, 2013
We are actually not needing a lender as we are paying cash. (that probably would have been helpful info) I appreciate the responses and looked over my contract, there is a date, however closing costs are only discussed if a lender is involved....is this true? I can always ask my agent.
0 votes
Mary E Rober…, Agent, Fort Collins, CO
Sun Aug 25, 2013
You should know those answers before you sign a Purchase Agreement. Do you have an agent? Have you asked your lender about closing costs? They should have given you a Good Faith Estimate based on the purchase price of the house. And you should have some idea about closing date in the Purchase Agreement. If you didn't use an agent, then you will need to keep talking to Horton until you get some answers.
0 votes
We are actually not using a lender and paying cash. She projected the date as late Nov. or late Dec....was just curious if anyone had an experience with them....
Flag Sun Aug 25, 2013
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