Making Moves with Mandee

A Straightforward Guide to What’s Included, Who Pays, and How to Prepare for Closing Day

Making Moves with Mandee: Understanding Closing Costs: What Colorado Buyers & Sellers Should Expect

When buying or selling a home in Colorado, closing day can bring surprises, especially when it comes to closing costs. Let’s break down the essentials, so you’re ready for your final signatures without a hitch.

What Are Closing Costs?
Closing costs are the fees and expenses over and above the purchase price paid when transferring ownership of a property. They include charges from your lender, title company, local government, and sometimes even your HOA.

Common Closing Costs for Buyers

• Loan Origination Fees: Charged by your lender to process the new mortgage (usually 0.5–1% of the loan amount).
• Appraisal & Inspection Fees: Payment for experts who evaluate the property’s value and condition.
• Title Insurance: Protects you (and your lender) against ownership disputes.
• Recording Fees: Paid to the county to make your purchase official.
• Prepaid Taxes & Insurance: Typically, you’ll need to prepay a few months of property taxes and homeowners insurance.
• Escrow Fees: Paid for the service of managing closing documents and funds.

Common Closing Costs for Sellers

• Title Insurance (Owner’s Policy): Often paid by the seller in Colorado.
• Real Estate Agent Commissions: Usually 5–6% of the sale price, split between buyer’s and seller’s agents.
• Prorated Property Taxes: You’ll pay for the portion of the year you owned the home.
• HOA Transfer Fees: If applicable, for paperwork and record updates.

How Much Will You Pay?
Buyers typically pay around 2–5% of the home’s purchase price in closing costs. Sellers have fewer “fees,” but agent commissions are the largest expense.

Tips for Both Buyers & Sellers:

1. Review Your Loan Estimate and Closing Disclosure, they spell out the exact costs.
2. Ask for Clarification from your agent or lender if anything seems unclear.
3. Negotiate Credits: Sometimes buyers and sellers can negotiate for help covering closing costs.
4. Plan Ahead: Don’t let surprise fees disrupt your move, prepare funds in advance.

Bottom Line:
Transparency around closing costs sets you up for a smooth finish and peace of mind. With preparation and an experienced guide, you can move forward with confidence, no surprises, no stress.

Ready for your closing day? I'm here to answer every question and get you to the finish line with ease!