Stacked coins beside model house representing average closing costs for homebuyers in Colorado

If you’re getting ready to buy a home in Colorado, one of the biggest surprises can be the closing costs. These are the out-of-pocket expenses due at closing — and they’re separate from your down payment.

So what do most buyers actually pay in closing costs here in Colorado?

Let’s break it down.

What Are Closing Costs?

Closing costs are the fees and expenses tied to finalizing your home loan. They include things like:

  • Title insurance and settlement fees
  • Appraisal and credit report
  • Lender fees (like underwriting or origination)
  • Prepaid taxes and homeowners insurance
  • Escrow setup and recording fees

Some costs are fixed. Others depend on the size of your loan, location, and timing.

What’s the Average Closing Cost for Buyers in Colorado?

In most areas of Colorado, the average closing costs for a homebuyer range from 1.5% to 3% of the purchase price. Here’s what that could look like in real numbers:

  • $400,000 home: $8,000 – $12,000
  • $600,000 home: $10,000 – $14,000
  • $800,000 home: $12,000 – $16,000

If you’re using a low down payment program like FHA or Conventional 3%, that doesn’t change your closing costs — but it does mean you’ll want to plan ahead so you know your total cash-to-close.

Factors That Affect Your Closing Costs

Your final number depends on:

  • Your loan program (FHA, VA, Conventional, USDA)
  • Loan amount
  • Property taxes in your area
  • Time of month you close
  • Whether the seller contributes to closing costs

For example, VA and USDA buyers may roll some or all of their closing costs into the loan. First-time buyers may qualify for programs that help cover closing costs. And in many cases, sellers can help cover part of your costs as part of your offer.

Can You Reduce Closing Costs?

Yes — there are a few strategies that can help:

  • Negotiate for seller concessions
  • Use a down payment assistance program
  • Explore rate vs. closing cost tradeoffs (a lender credit)

We’ll help structure your loan to match your goals and budget.

The Bottom Line

Most Colorado buyers pay 1.5% to 3% of the purchase price in closing costs, but that number can vary depending on your loan, the home, and how we structure your offer.

We help homebuyers across Centennial, Denver, Castle Rock, Parker, Highlands Ranch, and throughout Colorado plan ahead with real numbers — so there are no surprises on closing day.

If you want to understand exactly what your closing costs could look like, reach out, call or text 303-670-0137, or email rbaxter@choicemortgage.com.

Posted in Blog, Home Purchase