Home Closings In Colorado Springs: Lori Thompson Discusses Timelines

Most buyers think closing is just paperwork and a signature. The truth is the home closing timeline in Colorado Springs is a chain of deadlines, third-party schedules, and financial guardrails and one wrong move can slow everything down or derail the deal.

In this episode, I walk through what to expect from contract to keys, including why 30 to 45 days is a smart baseline for most Colorado Springs real estate transactions. We talk about how loan type and lender strength can change the pace, when a VA loan or FHA loan appraisal can add uncertainty, and why a little buffer time can make the whole process calmer. You’ll also hear the most common sources of delays: inspection surprises, hail-related repairs, underwriting conditions, and the buyer mistake we warn about nonstop because it can wreck your debt-to-income ratio.

We also get practical about the steps you can control. We explain how to prep with a strong pre-approval or even pre-underwriting, why scheduling the home inspection early matters, and how homeowners insurance shopping has become harder and more detailed. Then we dig into the final week before closing: why your final numbers often arrive only days ahead, what Colorado “good funds” rules mean for cashier’s checks and wire transfers, and how to protect yourself from real estate wire fraud by verifying wiring instructions directly with the title company.

If you’re buying, selling, or PCSing to Colorado Springs, subscribe for more clear, real-world guidance and share this with a friend who’s about to go under contract. What part of the closing process makes you the most nervous?

To learn more about RE/MAX Properties Inc. visit:
https://www.LoriThompson.REMAX.com
RE/MAX Properties Inc. 
Colorado Springs 
719-332-1807 

Transcript

Show Opening And Hosts

SPEAKER_01 0:03

Welcome to your Colorado Spring Life, where real estate is real time. Maybe a little too much cover. Hosted by Remax Properties Licensed Realtor Broker and Producer Lori Thompson, a local legend who've been helping military families and civilians buy itself for over 40 years. Whether you're PCSing, upsizing, downsizing, or just a dream, Lori's got you covered. Why? Because she's your lifetime realtor. And she actually answers her phone. Imagine that.

SPEAKER_02 0:52

Welcome back, everyone. I am Frederick, co-host and producer in the studio with Remax Properties licensed realtor and broker, Lori Thompson. Lori, how are things shaping up today?

SPEAKER_00 1:04

Oh, pretty good. How are they going for you?

SPEAKER_02 1:06

Pretty good too. Great.

Typical Closing Timeline And Buffers

SPEAKER_02 1:08

So, Lori, always great to sit down with you. Can you tell our listeners how long does it take to close on a home in Colorado Springs?

SPEAKER_00 1:17

Well, there is actually a little bit of variety depending on the type of financing. But if you were to look for an average, I would say 30 to 45 days is a good plan. However, I always believe the six piece, proper planning prevents piss poor performance, and things can always go wrong. So I always, whenever possible, and it's not always possible, I always kind of like to have a backup plan. Typically, if someone is in a lease situation, I like for them to close and have several weeks to move. The other advantage to that is first of all, interest is paid in arrears on a mortgage. So a lot of people, when they're going from rental to ownership, in a rent situation, you pay your rent January 1st and you've paid for the month of January. When you own a home, that January 1st payment goes backwards and it pays for December. So let's say you close on a home at the end of January, your first payment is not going to be due until March. So you have a little bit of a buffer during that time. I always like it when people, if they're here locally, I like them to have a few weeks because first off, let's say we do the home inspection and we find out something's really wrong here. Where we either need to terminate or we need to get into some heavy duty negotiations about what's going to happen here. Always having that buffer is just good. It just gives you a little bit of flexibility. But normally most transactions will close within 30 to 45 days. That gives you time to process a mortgage, get your home inspection done, get the appraisal done, take care of anything that needs to be taken care of and close. Every now and then you find a seller who says, Hey, I'd like a week or two of post-closing occupancy because they actually need the proceeds from their home to move with. So that comes up from time to time. So in general, 30 to 45 days, but whenever possible, I always like to work in a buffer just to make it a more pleasant experience.

SPEAKER_02 3:24

Gotcha, gotcha. So you mentioned 30 to 40

How Loan Type Affects Speed

SPEAKER_02 3:28

days. Um so that leads me to wonder how does the type of loan, you know, whether it's VA, FHA, or conventional, impact the closing speed?

SPEAKER_00 3:38

Well, you know, if you have a really top-notch loan officer, you can do any of those loans in about two to three weeks. It's just good because it depends on what their pipeline is. It depends on how busy things are. Right now we're going through a little bit of a spurt, so it might take longer to get a home inspection. But I have a house I just put under contract, and those sellers are now my buyers, and we're looking at closing on a home in two and a half weeks. I reached out to the lender and I said, Can you do this? And she says, You bet I can. So we're just click, click, click down the road. But once again, always have a backup plan, always have a buffer. And I was really fortunate with the sale of their home. I did negotiate 11 days of post-closing occupancy. So we have that buffer in there if we need it.

SPEAKER_02 4:26

Wonderful, wonderful. So you mentioned, you know, 30 to 40 days of closing. Maybe getting the mortgage and financing could take two weeks. So that being said, what steps in the overall process tend to cause the most delays?

Biggest Causes Of Closing Delays

SPEAKER_00 4:41

Um, oh my gosh, that's that's a great question. Uh, items discovered during a home inspection can be a big one. Every now and then we get a really massive hailstorm. And at that point, we have to make an arrangement for a roof replacement or window replacement. Those things can definitely delay the closing. Um the other thing is with FHA and VA loans, you cannot put a deadline for the appraiser to get out there. So if they get backlogged on their appraisal schedule, that can be a delay. So I would say primarily it's underwriting. The biggest thing that every realtor dreads that I, you know, we try to repeat over and over again do not make any major purchases from your loan application to closing, do not buy a car. Do not finance a washer and dryer, do not go furniture shopping, because anything you do that can affect your debt-to-income ratio can blow apart the whole transaction. Now it's very rare, but we always warn people do not change your financial structure and try very hard not to lose your job until you've closed.

SPEAKER_02 5:54

Yeah, that is important and all good information. So, with all that in mind, are there ways buyers can prepare ahead of time to help speed up the closing process?

How Buyers Can Speed Things Up

SPEAKER_00 6:06

Just a great pre-approval. Uh, get pre-underwritten, get pre-qualified, and have your ducks in a row know what you need to do in advance, exactly how much you can qualify for. It's really hard to shop for homeowners insurance until you have an address. Because once you have an address, then you have the age of the roof, etc. I mean, nowadays to get insurance, it's like the Spanish Inquisition. You have to fill out a three-page application. So it's kind of hard to do that in advance. You need an address for that. But once you're under contract, the most important things you can do to keep it on a good timeline is start shopping for home insurance and schedule your home inspection.

SPEAKER_02 6:46

Nice, nice. Thanks for that.

SPEAKER_00 6:48

But do not go furniture shopping.

SPEAKER_02 6:51

Gotcha, gotcha. Furniture shopping, do not finance uh washer and dryer, gotcha on all those points. Thank you so much for

Inspections Appraisals And Risk Control

SPEAKER_02 6:58

that. So, how do inspections and appraisals factor into the overall timeline?

SPEAKER_00 7:03

Well, usually you can schedule your home inspection within a week of going under contract, and the sooner the better, because you want to know what you have to deal with. Um, the appraisal you don't have as much control over. That's really between the lender. But I always try to protect my clients' money. I have a fiduciary obligation to my clients. I represent my clients, and so I always tell them here's what you prepare for. Up front, you're gonna put down your earnest money deposit, and that's held by the title company until closing. It'll be credited back to you at closing unless you have one of the reasons to terminate within the color estate contract. Next thing I want you to do is have your home inspection, and I will try to postpone the appraisal until we are done with the home inspection. That goes to a third-party vendor that cannot be financed. So you're paying an independent inspector to inspect the home to make sure there's no major problems. I do not want my clients to pay for an appraisal until we are done with the inspection items because the appraisal is also paid to a third-party vendor through their mortgage company. And so I try to minimize their risk. If they have a bad home inspection, they can terminate the contract and get their earnest money back, and they have not paid for an appraisal. So I'm very protective of my clients and I want them to have minimized risk with each step of the transaction. But if the home inspection goes well, then we move on to the appraisal. So insurance has become a bit of an issue, so it's a really good idea to shop around for good insurance.

SPEAKER_02 8:43

Gotcha, gotcha. So say the inspection goes well, the appraisal goes well, everything goes well.

Final Week Numbers Good Funds Wire Fraud

SPEAKER_02 8:50

What should buyers expect during the final week before closing?

SPEAKER_00 8:54

A very happy realtor. But no, here's the thing. I am happy when everything goes well, and they are too. One of the frustrations is they're not going to get their final closing numbers till two or three days before closing. They'll get an estimate from their lender. Typically, they tend to pad that estimate so the buyer can be surprised at the time of closing. Um, but I would really love it. Periodically, they want their numbers in advance. But until they cross balance with the title company, all I can do is a guesstimate with their lender. So the final week of closing, that's when they're going to get their numbers. And in accordance with Colorado State good funds law, the money they bring to closing must be good funds. Now, not gold bullion or or any type of cyber currency. It has to be a cashier's check or a wire transfer, but it has to be certified funds, and that is a state law. You cannot bring a personal check to closing. So they have to arrange with their financial institution as soon as they know that final number, and it is wired to the title company, which allows me to bring up a very important point. There's been a lot of wire fraud in the United States, and I always prepare my clients in advance before you wire those funds in. You call your title closer directly to get your wiring instructions to make sure you have the correct bank routing number address for that closing because there are phishing emails that can somehow they're so good with cybersecurity. They have people who can tell that you're going to close on a house and they can send you out a fraudulent link. So I have a wire fraud warning that I go over with them to make sure that they wire their funds to the correct financial institution or they pick up a cashier's check to bring to closing.

SPEAKER_02 10:50

Yeah, that is very important. And I'm sure your clients definitely appreciate you looking out for them in that regard. So thank you so much for that. And thanks for breaking down the closing timeline so clearly and thoroughly. We do appreciate your expertise. And of course, everyone joining in from home, thanks for being a part of this journey, and we'll see you all again next time.

SPEAKER_00 11:10

Thanks, Frederick.

Wrap Up And Contact Info

SPEAKER_01 11:15

That's a wrap for this episode of Your Colorado Springs Life and Home. Got questions? Need advice? Just want to talk about interest rates and granted countertops? Call or text Maury at 719-332-1807. Yes, she'll really respond. Or visit Laurethomson.remax.com to get started with your lifetime realtor. Because when it comes to Colorado real estate, Maury doesn't just know the market, she is the market.