What is the purpose of a 'loan contingency removal' date in a Colorado real estate contract?
Why The deadline by which the buyer must confirm financing is secured or exercise the loan contingency to terminate Is Correct
Answer B: The deadline by which the buyer must confirm financing is secured or exercise the loan contingency to terminate
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Colorado Questions
- The Colorado Contract to Buy and Sell includes a 'title objection deadline.' What must the buyer do by this date?Contracts
- The Colorado Contract to Buy and Sell includes a 'loan termination deadline.' If the buyer cannot obtain financing, by this date the buyer must:Contracts
- A Colorado Contract to Buy and Sell includes a 'survey objection' deadline. This allows the buyer to review a survey and object to:Contracts
- In Colorado, the 'Loan Objection Deadline' in the Contract to Buy and Sell allows the buyer to terminate if:Contracts
- A Colorado mortgage servicer must notify a borrower within how many days if their loan is transferred to a new servicer?Finance
- A Colorado property appraises for $385,000 on a $400,000 purchase contract. The lender will only lend 95% of the appraised value. What is the maximum loan amount?Finance
- A Colorado homebuyer using a VA loan learns their lender is requiring a 'termite inspection' even though the VA does not mandate it in Colorado. The lender is:Finance
- A Colorado homeowner makes extra principal payments of $200/month on their 30-year, $350,000 mortgage. Approximately how much sooner will they pay off the loan compared to making regular payments only? (Assume the extra payments reduce the term significantly.)Real Estate Math
Key Terms to Know
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →