All home sales go through a closing process that takes about 30 days, starting with a signed contract and ending when all paperwork is signed and the seller transfers ownership of the home to the buyer. During these 30 days a number of tasks are completed including:
Most buyers need a loan. Loans must meet the program loan requirements including loan terms and buyer debt-to-income ratio rules.
Obtaining a loan can take time and the program recommends that buyers begin the process early. To ensure buyers meet program loan requirements, buyers must have their lender and title company submit the following for review:
All buyers must have the home inspected by a certified inspector prior to closing and the inspection report must be shared with the program. Learn more about the inspection process on the Home Sale Process page.
All buyers need Homeowners Insurance, sometimes called Hazard Insurance, to help pay the cost to repair a home that is accidentally damaged. Owners need enough insurance to replace the home if it is fully destroyed. The full replacement cost is often more than the affordable value paid for the home because the cost to rebuild could be more than the artificially low resale price.
Another part of the puzzle is the Homeowners Association (HOA) insurance. HOAs often have coverage for some parts of the building. For example, the HOA’s insurance may cover the outside of the building, in which case owners may only need insurance for the inside of the home. This varies from home to home and buyers should check with the HOA to understand what they may cover.
Learn more with the Homeowner Insurance Check List.
Many homes in the program are part of a Homeowner Association (HOA) that charge a monthly fee and come with some owner restrictions. HOAs may also pay for some living costs like trash, snow removal, etc. It is important that buyers understand how the HOA impacts their ownership experience. A more detailed description of an HOA can be found on the Colorado Division of Real Estate website.
During the closing process, buyers will get information about the HOA and buyers can review the program’s HOA checklist for additional guidance on reviewing HOAs.
The title company organizes the closing of the sale and will prepare the documents that the buyer and seller sign. It is important to review the information sent by the title company and to provide the information they request. A real estate agent can further explain the title company’s role.
