All About Loan Terms

What are the loan term deadlines?

If you are using a loan to purchase a property, you’ll be working with a lender and be subject to loan term deadlines in the Colorado Real Estate Purchase Contract. These include several key dates and milestones that you as the buyer (in close collaboration with your lender) must meet to secure financing for the property.

These loan application deadlines typically include:

1. New Loan Application Deadline (5.1): The date by which you, the buyer must submit a formal loan application to your lender. This is usually within 3 business days of going under contract. It’s a quick turnaround time because the loan process is the one element within a contract that takes the longest time to process through underwriting and lender due diligence. As such, this deadline ensures the loan application is underway in a timeframe that positions it to meet all the loan requirements for an on-time close. Your Thrive Transaction Team will automatically submit your contract to your lender on file as part of their transaction management processes.
   
2. New Loan Terms Deadline (5.2.1): The date by which you, the buyer, must notify the seller if you have any objections to the terms of your loan. This deadline is usually 10-14 business days of going under contract, and gives you a chance to review the terms of your loan as provided by your lender. This decision is within your sole subjective discretion and covers terms such as payments, interest rate, conditions, and costs or any other loan terms. Also If you are unable to secure a loan this is an opportunity to terminate the contract. 
3. New Loan Availability Deadline (5.2.2.): This is usually set within 2- 3 days of closing and is the date by which you, the buyer must obtain final loan approval from your lender, ensuring that all conditions have been met and the loan is ready to close. You do not have a right to terminate based on the New Loan Availability if the termination is based on new loan terms, appraised value, any lender property requirements, insurability, or the Conditional Upon Sale of Property clause. Essentially, in layman’s terms, the deadline relates to any circumstances that may have arisen since the loan terms deadline that would prevent the lender from funding your loan. Most commonly these are things like:
   
   • if you lose your job and can no longer support the loan repayments,
   • you’ve taken out another loan or made a large purchase (like a car),
   • the loan product the bank assigned is no longer available.
4. Closing Date: The final date by which all financing and contractual obligations must be met, and the property transaction is completed. This is the date at which your loan is signed off and funds transferred to the title company. You will have some final loan documents to sign at this time. Your lender will coordinate with you directly on this – usually it is done electronically on the day of closing and/or a “wet signing” takes place at the closing table.