Glossary Of Terms
Some home building terms you should know.
60-day Warranty Review
This occurs 60 days after a buyer takes possession of their new home. During this visit the assigned Customer Care Field Manager will review the warranty process and guidelines, explain the procedure for requesting service, and answer any questions that a buyer may have.
Closing
The conclusion of the loan transaction. This includes delivery of a deed, financial adjustments, the signing of closing documents and the disbursement of funds necessary to finalize the sale or loan transaction.
Closing Costs
Money paid by the borrower or the seller for various services provided in connection with the closing of a mortgage loan. This generally involves an appraisal, title insurance, closing fee, credit report fee, tax service fee, underwriting fee, settlement fee, flood certification fee, recording fees, courier fee and final inspection fee.
Closing Documents
The documents which are signed at closing. These include: the Deed of Trust with attachments, Promissory Note, Truth-in-Lending Disclosing, and other documents related to the transaction.
Deed of Trust
A legal instrument that conveys an interest in real property given as security for the payment of a debt.
Earnest Deposit
A portion of the down payment delivered to the seller by the purchaser of real estate with a purchase offer as evidence of good faith.
Easement
A right given to a third party to use a portion of property for certain purposes, such as power lines or water mains.
Elevation
The exterior facade of a home, including the materials (like brick or stone) used on that face. At HearthStone Homes, you get to choose from three to five different elevations, or architectural styles, in addition to a selection of colors for each of our plans. So the house you buy will look like your house, and not like the one next door.
Framing
The construction of the skeleton structure, or framework, of a house.
Floor Plan
An architectural drawing showing the overall layout of a home. At HearthStone Homes, most of our communities offer several plans from which to choose: ranch plans, 2-stories, etc.
Homeowners Association (HOA)
In many new communities, an association of homeowners is formed. The Homeowners Association is responsible for compliance with the rules and regulations of the community, and also for the maintenance and upkeep of any common areas and landscaping.
Home Site
Each new community is divided into individual lots, or home sites. In HearthStone Homes’ communities, a home buyer gets to choose their home site and the floor plan that suits them best. Some restrictions such as home site availability, timing or suitability of some lots for specific floor plans apply. There are also some restrictions to ensure the streetscape of the neighborhood; this ensures that your home is not like your neighbor’s!
Included Features
Included features included in the base price of your new home. Examples include specific types of appliances, flooring, windows, etc.
Lot Premium
A premium paid by the buyer for a special, unique home site that may be either larger or in a more desirable location.
Mortgage Insurance
Insurance which protects the lender against loss that could result from a mortgage default.
New Home Orientation (NHO)
The New Home Orientation provides buyers with the opportunity to become acquainted with their new home prior to moving in. During the orientation, a HearthStone Homes’ builder provides a thorough demonstration of the completed home (e.g., mechanical components, appliances, etc.) and a Customer Care Field Manager reviews items covered by the warranty.
Option
All HearthStone homes come with many included features and buyers are able to select colors for many of these features. In addition, HearthStone homebuyers are able to personalize their home to fit their unique lifestyle by purchasing additional options such as appliances, designer finishes on cabinets, countertops and floors, fireplaces and a variety of other choices through the HearthStone Homes’ Choice Studio. This enables us to keep the price of the home low while ensuring that you only pay for the options that are truly important to you.
Phase
A group of home sites within a community. At HearthStone, we sell the lots within the current phase before moving on to the next phase of the community. The benefit to the homebuyer is that in most cases construction activity is focused in one small area at a time. So when you move in to your new home, most of the construction for neighboring homes will already be complete.
Reservation Agreement
An agreement to purchase a home at a future date. At HearthStone Homes, a reservation is taken for a specific lot and the floor plan that you would like to have built on that lot. A reservation always requires an earnest deposit.
Title Company
The company that researches the title of the property and guarantees that the research is correct.
Underwriting
The process of analyzing the loan application and supporting information to decide whether the loan is acceptable and at what terms. Underwriting generally takes place immediately prior to closing.
Warranty
At HearthStone Homes, we offer a 2-year builder’s warranty and a 10-year limited structural warranty. All home buyers are given a New Home Warranty & Maintenance Manual at the time they sign a Reservation Agreement. The manual is reviewed by a HearthStone Homes’ Customer Care Field Manager at the New Home Orientation.
