Because my commission refund cannot exceed the closing costs, I figured I better address this topic. (Even though closing costs typically run over 2% of the price of the home and my rebate is typically no more than 1.4% of the purchase price.)
Closing costs are generally considered to fall into three groups: Loan fees, Title/Settlement Fees, and Prepaids.
Loan fees are self explanatory, but would include any origination fee you are paying on the loan. If you didn’t pay for your appraisal before closing, you would consider the appraisal fee to fall into this bucket.
Title and Settlement fees are largely made up of what the title company is charging you to issue the title insurance FOR YOUR LOAN. You see there are two title insurance policies generally…one for you, and one for the lender. The Seller usually pays for the “owners’ policy” (for you), but you will have to pay for the policy that insures your lender. Settlement fees are usually pretty meager, but most real estate contracts have the buyer paying something to the closing company for all their administration of the closing documents.
Lastly, prepaids include things that are due on the day of closing…which might include insurance or HOA dues, and always includes a tax proration…and an interest proration if you have a loan.
Lenders are the people to talk to in order to get the specifics and a better idea of how things may play out in your particular case…but this is your quick answer on how much closing costs are in Colorado.