Customary Buyer Closing Fees

Expected Closing Fees

The list below outlines what you can expect in “Closing fees” in the Denver-metro area. These items are in addition to your down payment and include pre-paid items (pro-rated fees paid in advance) and overall expenses. Amounts are estimates and contingent upon factors such as loan type, square footage and price of the home.
Your Closing fees will usually amount to 2-3% of the purchase price for pre-paid items and additional expenses. Also, it is becoming increasingly common in today’s market to ask the Seller to pay for some of the Closing costs, and I will happily negotiate these fees on your behalf.

Typical Closing Costs

Lender Fees

• Loan Origination Fee – usually amounts to 1% of the purchase price
• Loan Discount Points – varies with market conditions and each point is 1% of the loan amount
• Credit Report – $25.00
• Loan Underwriting Fee – depends on the loan amount
• Appraisal Fee – about $350.00-$425.00
• Mortgage Broker Fee – varies with market conditions
• Tax Related Service Fee – approximately $70.00
• Processing Fee – approximately $299.00
• Lender Title Policy – approximately $125.00

Home Owner’s Association Fees

• HOA Transfer Fee – Depends on the association(s

Title Charges

• Closing Fee – approximately $160.00 and usually split between buyer and seller
• Loan Prep Fees – typically $200.00
• Notary Fees – usually waived if lender is a notary
• Title Insurance – approximately $120-$150.00

Government Fees

• Recording Fees – approximately $100.00
• City/County Tax Fees – approximately $35.00
• State Tax Stamps – 1 cent per every thousand dollars

Items Required by Lender to be Paid in Advance

• Interest – calculated as daily interest is accrued from close date until the end of the month; buyer owns date of close in Colorado
• Hazard Insurance Premiums – typically 1 year worth of premiums plus additional 2-3 months of premiums placed in escrow/reserve account
• Mortgage Insurance Premiums (if applicable) – typically required if putting less than 20% down on home and also requires 2-4 months of premiums to be held in escrow/reserve account
• Property Taxes: Colorado property taxes are paid in arrears. In addition to Seller’s credit to Buyers, 2-4 months of taxes are collected and placed in purchaser’s escrow/reserve account

Paid Outside of Closing

• Home Inspections
• Sewer scopes
• Radon testing
• Improvement Location Certificates
• Surveys

Your lender will give you a “Good Faith Estimate” within 72 hours following loan submission, which will give you an estimate of the amount of funds needed to close on the home.