Contracts
Under Colorado's Contract to Buy and Sell, the 'Source of Funds' provision requires the buyer to:
AProvide bank statements at contract signing
BIndicate how they intend to pay for the property (cash, conventional loan, FHA, VA, etc.)✓ Correct
CProve funds are in a Colorado bank account
DExplain the source of their down payment only
Explanation
The Colorado Contract to Buy and Sell includes provisions for the buyer to identify their source of funds (cash, financing type such as conventional, FHA, or VA, down payment amount, and other financial terms), which informs the seller about the buyer's financing plan.
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