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| After construction of a new custom home is completed, but before moved in to, the homeowner and builder typically conduct a walk-through inspection of the home. This inspection is an opportunity to note any items that need attention, completion or repair. The builder prepares a "punch-list" based on this inspection, then schedules subcontractors and suppliers to return to the home to complete or repair their work. The local building inspector also will need to tour the completed home. In most cases, this inspector will need to issue a certificate of occupancy before the homeowner can move in. Issuance of this certificate doesn't mean all the work on the home is done, rather, it certifies that the home is habitable and safe according to local occupancy guidelines. If there is an architectural control committee, they may want to conduct an inspection of the property of their own. |
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 When do you move in?How soon you can move into your new home depends on a number of items. Generally, if you already have title (i.e., ownership) and have been carrying the construction loan, you may be able to move in as soon as the certificate of occupancy is issued. If you do not have title and the builder has been carrying the construction loan, you probably won't be able to move in until the final construction invoices are paid and your mortgage is in place. In any event, these final steps will be directed by the terms of your construction contract. Your mortgage loan may be funded as soon as the certificate of occupancy is issued, even if some final work on your home hasn't been completed due to unavoidable delays. In this case, the title company or lender typically will establish an escrow account to fund the costs of unfinished work. When the work is finalized, the money in the escrow account will be disbursed to the builder or the finishing subcontractors. |
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