Colorado Springs Real Estate Contract Guide – Loan Conditions
One of the final hurdles to clear is the loan conditions deadline or loan objection. The buyer has the right to review the terms of the loan and be sure they are happy with them. Sounds subjective? It is! A buyer may terminate the contract basically for any reason up until the loan conditions deadline. All the buyer has to do is say they are unhappy with the terms of their loan and they can be released without penalty from the contract as long as they cancel before the deadline. This is a very perilous deadline for sellers.
It is important to note that the loan objection deadline has nothing to do with the lender performing. However, the buyer is responsible for their lender performing so often they will attempt to push the loan conditions deadline out to when they feel that the lender will give them final loan approval. (typically 3-4 days before closing)
Timeline – Typically right before closing. 3 to 5 days.
Colorado Springs Real Estate Buyer:
Push this date out as far as possible. If you have sudden job change or unexpected life change, you can get out of the contract without penalty.
Colorado Springs Real Estate Seller:
Read Buyer tip and take warning! If possible when negotiating the contract, try to pull the loan conditions in early enough so that you aren’t moving your stuff out of the house with that day still looming. This can be a sticky one though as some Realtors get ….shall we say…passionate about this date. I wouldn’t recommend killing a deal over this date. Just be sure you understand the risk and plan accordingly.
If you have a specific question not covered on this site, please contact me.