Refinance Loan Timeline: Rate-and-Term and Cash-Out Processing Breakdown
Refinances in Colorado typically close in 21–35 days. The timeline is similar to a purchase but without the contract coordination — seller, Realtor, and HOA questionnaire (unless condo) simplifications.
Day-by-Day Timeline
- 1Day 1–5: Application, disclosures, title ordered
- 2Day 5–8: File submitted to processing, DU/LP run
- 3Day 8–14: Appraisal ordered (if not waived)
- 4Day 14–18: Appraisal received, underwriting submission
- 5Day 18–24: Conditional approval, conditions collected
- 6Day 24–28: Conditions submitted
- 7Day 28–32: Clear-to-close
- 8Day 32–35: Closing (3-day rescission period on primary residence refinances)
How CTC Manages This Process
Refinances benefit from no seller or Realtor coordination — the main variables are appraisal, income documentation, and the 3-day rescission period on primary residences. CTC builds these into every refinance timeline.
Frequently Asked Questions
What is the 3-day rescission period?
Federal law gives primary residence refinance borrowers 3 business days after signing to cancel without penalty. This period begins the day after signing. Investors and second homes are not subject to rescission. CTC plans closing dates to account for this.
How long does a cash-out refinance take vs. rate-and-term?
About the same — 25–35 days. Cash-out refinances may require more income documentation review and the LTV is limited (80% max for conventional). DSCR cash-out refinances qualify on property cash flow.
What is the maximum LTV for a cash-out refinance in Colorado?
Conventional: 80% LTV maximum for primary and second homes. Investment property: 75% LTV maximum. FHA: 80% LTV. VA: 90% LTV. Jumbo: varies by investor (typically 70–75% LTV).