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If you are a buyer or a seller of a piece of real estate in Colorado you will most likely sign a standard contract prescribed by the Colorado Real Estate Board. In this contract there are sections dealing with the purchase price, details of who pays for an appraisal, information on Home Owner's Association fees and a dozen plus specific dates.
The dates listed on this contract include the closing date, a deadline for Title Insurance and a loan commitment deadline date. In fact, as I sit here and look at a contract to buy and sell real estate I see 27 lines with headings that can have dates inserted.
As an example, there is one line, line 5b, titled “Loan Conditions Deadline”. This line is very important to me as a mortgage broker, as this is the date set out in the contract that obligates the buyer to have a loan commitment. The commitment can be as little as a pre-approval from an investor and can be as much as a loan approval from an investor. But the interesting fact is that this deadline only obligates the buyer, not the mortgage lender. The same is true for line 6a, which is Appraisal Deadline. This date is generally picked by the buyer and their real estate agent but most of the time the appraiser is not contacted to determine if this date is agreeable to them.
So here is the part that I want all potential buyers, sellers and real estate agents to read. The dates set forth on the contract are your deadlines not mine. This sounds rather cold and I always attempt to meet and I really try to beat the deadlines on the contract but the dates and the contract does not obligate me, the appraiser, or the Title Company. We all try to meet those deadlines but it is not always possible.
Here is what I suggest is done prior to signing the real estate contract. As a buyer you should have met with a mortgage professional prior to getting this far along with the prospect of buying a home. This is unless you are using the four-letter word all mortgage professionals hate, cash. Obtaining a mortgage can be for most borrowers a fast and rather simple process, but for some it can be a long drawn out nightmare. So be prepared in advance of signing the contract.
To all buyers' real estate agents I suggest you push for the buyers to at least be pre-qualified by a mortgage professional. Plus, I would like you to have a conversation with your buyer's mortgage professional to review the proposed deadlines. It may be possible to move up the dates but in some cases it may be necessary to push back some dates.
My bottom line to all buyers, sellers and real estate agents is to take five minutes out of your day to make a few calls to those others involved in your contracts. Make sure the deadlines are attainable and then you may save yourself time and headaches when the deadline is here.
For answers to your mortgage related questions call Bob Kieber at (970) 262-1199 or e-mail him at rkieber@comcast.net. Bob is a local mortgage lender and principal of Resort Lending. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country.
The dates listed on this contract include the closing date, a deadline for Title Insurance and a loan commitment deadline date. In fact, as I sit here and look at a contract to buy and sell real estate I see 27 lines with headings that can have dates inserted.
As an example, there is one line, line 5b, titled “Loan Conditions Deadline”. This line is very important to me as a mortgage broker, as this is the date set out in the contract that obligates the buyer to have a loan commitment. The commitment can be as little as a pre-approval from an investor and can be as much as a loan approval from an investor. But the interesting fact is that this deadline only obligates the buyer, not the mortgage lender. The same is true for line 6a, which is Appraisal Deadline. This date is generally picked by the buyer and their real estate agent but most of the time the appraiser is not contacted to determine if this date is agreeable to them.
So here is the part that I want all potential buyers, sellers and real estate agents to read. The dates set forth on the contract are your deadlines not mine. This sounds rather cold and I always attempt to meet and I really try to beat the deadlines on the contract but the dates and the contract does not obligate me, the appraiser, or the Title Company. We all try to meet those deadlines but it is not always possible.
Here is what I suggest is done prior to signing the real estate contract. As a buyer you should have met with a mortgage professional prior to getting this far along with the prospect of buying a home. This is unless you are using the four-letter word all mortgage professionals hate, cash. Obtaining a mortgage can be for most borrowers a fast and rather simple process, but for some it can be a long drawn out nightmare. So be prepared in advance of signing the contract.
To all buyers' real estate agents I suggest you push for the buyers to at least be pre-qualified by a mortgage professional. Plus, I would like you to have a conversation with your buyer's mortgage professional to review the proposed deadlines. It may be possible to move up the dates but in some cases it may be necessary to push back some dates.
My bottom line to all buyers, sellers and real estate agents is to take five minutes out of your day to make a few calls to those others involved in your contracts. Make sure the deadlines are attainable and then you may save yourself time and headaches when the deadline is here.
For answers to your mortgage related questions call Bob Kieber at (970) 262-1199 or e-mail him at rkieber@comcast.net. Bob is a local mortgage lender and principal of Resort Lending. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country.
