Closing costs in Colorado: what buyers pay, and what sellers can cover
Plan on closing costs of roughly 1.5% to 3% of the price, on top of your down payment. On a $650,000 home with 10% down, that's about $8,000 to $20,000, and about half of it is prepaid insurance, interest, and taxes. In Colorado the seller usually pays for the owner's title policy, and there's no state transfer tax. The seller can also agree to pay part of your costs, up to a limit set by your loan.
Figures checked October 21, 2026.
Closing costs are everything you pay to complete the purchase besides the down payment. Your lender lists them on the Loan Estimate you get after you apply, and again on the Closing Disclosure before you close. Here’s what’s on those forms for a Colorado purchase.
What buyers pay
Lender costs. The lender’s fee for making the loan, plus the appraisal and credit report. If you pay points to lower your rate, they show up here too.
Title and closing. The title company handles the closing and the title insurance. Under Colorado’s standard contract, the seller picks the title company and pays for the owner’s title policy, which protects you, unless the contract says otherwise. You pay for the lender’s policy, which protects the lender. Bought together with the owner’s policy, it’s a small charge, often a couple hundred dollars. The title company also charges a closing fee, and the contract says whether you, the seller, or both of you pay it.
Government fees. The county charges to record the deed and your loan. In Jefferson County, for example, that’s $43 per document. Colorado’s documentary fee is 1 cent per $100 of the price, so $65 on a $650,000 home. There’s no state transfer tax.
Prepaids and escrow. This is usually the biggest piece, often about half of what you pay at closing. At closing you pay the first year of homeowners insurance, interest from closing day to the end of the month, and a few months of property taxes and insurance to start your escrow account. That money pays your own bills.
HOA costs. If the home is in an HOA, there may be a record change fee and a working capital contribution, and the contract says who pays each. The seller pays for the HOA’s status letter.
What sellers usually pay
The seller’s agent’s commission, the owner’s title policy, paying off their own loan, and their share of anything the contract splits. Property taxes are split by date. In Colorado, taxes are paid a year behind, so the seller usually credits you for the part of the year they owned the home.
Asking the seller to pay part of yours
You can ask for a seller credit toward your closing costs as part of your offer. It’s money the seller gives up from their side of the sale, and it lowers what you bring to closing. You can also use it to buy down your interest rate.
Your loan sets how much the seller can pay:
| Loan | Down payment | Most the seller can pay |
|---|---|---|
| Conventional | Less than 10% | 3% of the price |
| Conventional | 10% to 25% | 6% |
| Conventional | More than 25% | 9% |
| FHA | Any | 6% |
The credit also can’t be more than your actual closing costs, and it can’t go toward your down payment. On a $650,000 home with 10% down, the 6% limit would be $39,000, but closing costs of $8,000 to $20,000 are the real ceiling.
A credit and a price cut of the same amount affect you differently. The credit saves you cash at closing. A price cut lowers your loan and your payment a little each month. When cash is tight, the credit usually helps more.
How to lower what you bring to closing
- Ask the seller for a credit in your offer.
- Compare Loan Estimates from two or three lenders. Lender fees vary from one to the next.
- Ask about a lender credit, which lowers your costs in exchange for a slightly higher rate.
- Check the Colorado down payment programs. Some help with closing costs too. The Colorado programs article covers them.
- Close near the end of the month, which lowers the prepaid interest you owe at closing.
Questions
Does Colorado have a transfer tax?
Not a state one. Colorado charges a documentary fee of 1 cent per $100 of the price when the deed is recorded, which is $65 on a $650,000 home. The local transfer taxes Colorado has are in a handful of mountain towns, such as Aspen, Vail, and Telluride. Denver doesn't charge one. Some HOAs and newer communities charge their own transfer fees, and the contract says who pays them.
Can I roll closing costs into my loan?
Usually not on a purchase. You can lower what you bring to closing by asking the seller for a credit, or by taking a lender credit in exchange for a slightly higher rate. A lender can show you both.
When will I know my exact closing costs?
Your lender sends a Loan Estimate within three business days of your application, with the costs broken out line by line. You get the final numbers on the Closing Disclosure at least three business days before you close.
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This article is general information. A lender, attorney, or tax professional can tell you what applies to your situation.
