Moving Toward the Closing on Your Home

What Happens After Going Under Contract

Once you’re under contract, several critical processes begin simultaneously, and we coordinate all of them to ensure smooth progression toward closing.

Immediate Post-Contract Actions

Earnest Money Deposit: You’ll wire or deliver funds to the title company within the specified timeframe. These funds are held in escrow and applied to your purchase at closing.

Inspection Scheduling: We work with you to schedule professional home inspections and begin your due diligence process within the contingency period.

Loan Processing: Your lender begins final loan processing, ordering appraisals and reviewing all documentation for final approval.

Title Work Initiation: The title company begins researching the property’s ownership history and preparing for closing.

Colorado-Specific Legal Requirements

Seller’s Property Disclosure: Colorado law requires sellers to provide detailed disclosures about known property conditions, which we’ll review carefully with you.

Lead-Based Paint Disclosures: For homes built before 1978, federal law requires specific lead paint disclosures and potential testing opportunities.

HOA Documentation: If applicable, we’ll obtain and review homeowners association documents, budgets, and regulations.

Timeline and Deadline Management

Success in the under-contract period requires careful attention to multiple overlapping deadlines and requirements.

Critical Contingency Periods

Inspection Period: Typically 7-10 days to complete professional inspections and notify sellers of any concerns or repair requests.

Appraisal Timeline: Usually 2-3 weeks for the appraiser to complete their report and submit to your lender.

Financing Approval: Your lender will provide regular updates on loan processing and any additional requirements.

Final Walk-Through: Typically 24-48 hours before closing to ensure property condition and any agreed repairs have been completed.

Ongoing Communication and Coordination

We maintain regular contact with all parties throughout the contract period:

• Consistent updates on progress toward closing.
• Immediate notification of any issues requiring your attention
• Coordination between lender, title company, inspectors, and other professionals.
• Problem-solving for any complications that arise.

Your Rights and Protections Under Contract

Colorado’s real estate contracts provide several important buyer protections during the under-contract period.

Inspection Contingency Rights

During your inspection period, you have the right to:

• Professional inspections of all property systems and components.
• Negotiate repairs or credits for discovered issues.
• Terminate the contract if inspection results are unsatisfactory.
• Receive full earnest money refund if you terminate during this period.

Financing and Appraisal Protections

Your financing contingency protects you if:

• Loan approval is denied through no fault of your own.
• Property appraises below contract price and seller won’t adjust terms.
• Interest rates or loan terms change significantly from your pre-approval.

Contract Termination Scenarios

Understanding when you can terminate the contract and recover your earnest money is crucial for protecting your financial interests. We’ll explain all termination scenarios and ensure you meet required deadlines and procedures.