Kenna Real Estate Group · Colorado buyers
On a $500,000 Colorado purchase the buyer brings about $12,000 to $17,000 in closing costs and prepaids on top of the down payment. Here is where every dollar goes, what the seller can cover, and how to read the two forms that tell you the real number.
A live person answers. Not a robot, not a phone tree.
Budget 2 to 3 percent of the price for closing costs plus another 1 to 2 percent for prepaids, on top of the down payment. The number that matters is Cash to Close: down payment, plus closing costs, minus earnest money already deposited, minus seller and lender credits. It is printed on the Loan Estimate when you apply and on the Closing Disclosure three business days before closing. Sixty-three percent of Denver-area sales include a seller credit, and that credit pays these costs before it pays anything else.
Closing costs
2% to 3%
Lender, title, appraisal, recording and inspection charges. About $10,000 to $15,000 on $500,000.
Prepaids
1% to 2%
Your own future bills, collected early. The line buyers forget.
Seller credit
$10,000
Applied to closing costs and prepaids first, then a rate buydown.
Two forms
LE and CD
Compare them line by line. Ask about every line that moved.
| Line | Typical Colorado amount | What it is |
|---|---|---|
| Loan origination, underwriting, processing | $1,200 to $2,500, or 0.5% to 1% of the loan | The lender’s fee for making the loan. Points are extra and optional. |
| Discount points | 1% of the loan per point | Prepaid interest that lowers the rate. Compare against a seller-paid buydown. |
| Appraisal | $600 to $900 | Required by the lender; more for acreage and mountain homes. |
| Credit report, flood cert, tax service | $150 to $250 | Small lender pass-through charges. |
| Lender’s title insurance | $900 to $1,500 | Protects the lender. The seller buys the owner’s policy in Colorado by custom. |
| Settlement or closing fee | $400 to $700, split with the seller | The title company’s fee to run the closing. |
| Recording fees | $50 to $150 | County clerk records the deed and the deed of trust; Colorado uses flat per-page fees. |
| State documentary fee | $0.01 per $100 of price, paid by the seller | Colorado’s only transfer tax; $50 on $500,000. |
| Prepaid interest | Daily interest from closing to month end | Close late in the month to shrink it. |
| Homeowners insurance | First year up front, $2,500 to $4,500 on the Front Range | Hail country: the premium is the biggest prepaid surprise. |
| Escrow deposit | 2 to 4 months of taxes and insurance | Seeds the escrow account the lender pays bills from. |
| HOA transfer, status letter, working capital | $150 to $1,500 | Condos and covenant communities; who pays is in the contract. |
| Home inspection and sewer scope | $450 to $800 | Paid outside closing, during the inspection period. |
kennarealestate.com · free guide
What to ask for by loan type, the 2-1 buydown math on your price, the offer wording, and the inspection credit script
Ask for a credit, not a lower price. A $10,000 credit as a 2-1 buydown saves $616 a month in year one; the same $10,000 off the price saves $66. Sixty-three percent of Denver-area sales include a concession.
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KENNA REAL ESTATE GROUP
Call or text 303-955-4220 · A live person answers.
Text the address and your loan type to 303-955-4220. A live person sends the estimate, the seller-credit ask and the two-lender comparison the same day.
Call or text 303-955-4220Search all Colorado homesAbout 2 to 3 percent of the price for closing costs plus 1 to 2 percent for prepaids: roughly $12,000 to $17,000 on a $500,000 home before the down payment. Seller credits, lender credits and earnest money already paid reduce the cash you bring.
Only the state documentary fee of one cent per $100 of price, paid by the seller: $50 on a $500,000 sale. Some counties, Arapahoe among them, add a county documentary fee above a threshold.
Yes. Conventional loans allow 3 to 9 percent of the price depending on the down payment, FHA allows 6 percent, VA allows 4 percent plus all customary closing costs. The credit goes on the contract and shows on page 3 of the Closing Disclosure.
Closing costs are the fees and prepaids. Cash to close is the down payment plus closing costs, minus earnest money already deposited and any seller or lender credit. Cash to close is the wire.
By custom the seller buys the owner's policy and the buyer buys the lender's policy; the settlement fee is split. All of it is negotiable in the contract.
Only if you skip the builder incentive. Most Colorado builders pay $5,000 to $15,000 of closing costs when you use their lender; metro district taxes raise the escrow deposit, so ask for the tax bill before you compare.