Payments: What & When?
What payments do I need to budget for during the home buying process?
The first step is to pay an earnest money deposit to the builder to commit to the home you've chosen. Your sales counselor will tell you the amount of the deposit to pay by check.
Next you'll start customizing your home by choosing structural options like additional rooms, windows, doors, fireplaces etc. You need to pay the builder 100% of the cost of these options so construction can proceed. Your sales counselor can help you select these options and provide you with a price list.
When you visit the design center to select additional options like additional lighting, wiring and outlets etc. and upgrades such as cabinets and countertops, you'll need to pay for 100% of the cost of these items when you select them. If you chose to upgrade your flooring, you'll need to pay a deposit of 20% if you're adding the cost of your flooring to your mortgage, or a 50% deposit if you're paying cash at the time you select your flooring. Your payments for options, upgrades and flooring can only be made by check.
You're almost there"the last step is to make your down payment on your home if you're taking out a mortgage to finance your home. If you're a cash buyer, you'll make the payment for the total price of your home. You'll pay your closing costs to Escrow and sign your loan documents and any amendments.
What services will I be paying for when I pay closing costs?
You will usually be paying for such things as appraisal fees, loan fees, escrow fees, prorated payments for property taxes, homeowner association fees, and title insurance premiums.
The amount you pay for closing costs will vary. However, an estimate of your closing costs will be provided to you after you submit your loan application. This disclosure by the lender provides you with a good faith estimate of what your closing costs will be. An itemized list of charges will be prepared when you close your transaction and take title to your new home.
Your closing costs need to be paid in the form of a cashier's check, issued by a California institution, made payable to the escrow company, First American Title Insurance Company, in the amount requested.