What happens during closing on my new custom home?
The closing process for a custom home is very similar to a real estate closing. A real estate closing — also known as a “settlement” — is the process by which the title is conveyed from the seller to the buyer while both the buyer and the builder will have attorney representation and typically takes place prior to the start of construction. The buyer signs the note, mortgage, and all other papers required by the lender, and the seller signs the deed and delivers it to the buyer, thereby conveying ownership. A mechanic’s lien waiver is filed and this allows the builder to start construction following a successful closing.