CLOSING PROCEDURES

[ANN]

My husband and I have purchased a new home. We read Randy Eaton's book and
planned to put money down when we ordered, more when it was delivered to the dealer's and the rest when the set up was complete. The manager of the lot said the closing papers had to be signed and they had to be paid in full before they would bring the home to our property.This is NOT a land-home purchase. Is it normal procedure for them to expect payment in full before set up is complete?

[Dan O'Flaherty]

Many retailers require full payment, with maybe a small hold back, before sending a home to someones property. They feel that once on private property a customer could demand you leave without the home.
Talk to the manager, have him explane his policy and maybe you can come to an aggrement. Remeber if everything that has been aggreed to is in writing, the retailer is pretty committed.

[r murray]

Most dealers borrow money to pay the factory prior to shipment of the home to them...This is called floorplan...These loans MUST be paid off the very day the home is moved from the lot....

Because of this..most dealers will require payment to them prior to the move...Some will allow a small (2 to 5k) hold back to help your comfort level...but..most will not allow you to move in until the home is fully paid...

Inspect the home at the dealership very carefully..Talk to the manager and see if you can make arrangements..Relax and move forward..

[r murray]

Most dealers borrow money to pay the factory prior to shipment of the home to them...This is called floorplan...These loans MUST be paid off the very day the home is moved from the lot....

Because of this..most dealers will require payment to them prior to the move...Some will allow a small (2 to 5k) hold back to help your comfort level...but..most will not allow you to move in until the home is fully paid...

Inspect the home at the dealership very carefully..Talk to the manager and see if you can make arrangements..Relax and move forward..

[Randy Eaton]

Hello Ann,

Once you have loan approval, your lender or sales center will arrange for the signing of papers called, closing. Closing can take place at an escrow company or the lending institution. If the sales center is handling your loan the closing can take place at their location. All documents will be presented for your final review and signature. Here is a tip…take your time to review all documents and be sure the interest rate, closing costs and fees are the same as previously discussed with the lender or sales center. I have talked with a number of people who were taken advantage of during the closing process. I know of one couple in particular, while looking over the contracts they noticed the interest rate was two points higher then previously discussed with their sales center. The couple was told that if they didn’t sign, the deal would fall through. If this happens to you stop and find out the reason for the change. Personally, if this happened to me I would contact the Better Business Bureau and file a complaint, especially if I determined foul play was involved.


The Funding Process and Paying Cash

The funding process begins once the home has been delivered to the customer’s site. In some situations a lender will not release funds until the home has been installed. In most states the sales center will notify the lender once the home has been delivered. At this point the lender will usually go to the customer’s site and take a picture of the home. This can take up to fourteen days before the sales center receives payment in full. If a problem arises, for instance the sales center delivers the wrong home or the home was severely damaged during delivery, the buyer can notify the lender and halt the funding process. This protects the buyer and puts pressure on the sales center to correct the problem before they can receive funds from the lender.

Randy Eaton