Are you budgeting for a home purchase or sale in Congress Park and wondering what closing will actually cost? It is a common question, and the answer depends on your loan, the property type, and your contract. This guide gives you clear ranges, local norms, and practical tips so you can plan with confidence and avoid last‑minute surprises. Let’s dive in.
What closing costs cover
Closing costs are the fees, taxes, prepaid items, and prorations due when a home changes ownership. They are separate from your down payment and mortgage principal. You will see these costs detailed on your Loan Estimate early in the process and on your Closing Disclosure before you sign.
Who pays what in Denver
There is no single rule for who pays each line item. It is driven by local custom and your contract.
- Buyers commonly pay lender-related charges, inspections, lender’s title insurance, prepaid items, and recording fees for buyer documents.
- Sellers commonly pay real estate commission, the owner’s title insurance policy in many Colorado transactions, their mortgage payoff, prorated property taxes, and any agreed credits.
- Some fees, like settlement or escrow fees, are often split or negotiated.
Always review your Loan Estimate within three business days of loan application and your Closing Disclosure at least three business days before closing. Compare them line by line and ask questions early.
Buyer costs in Congress Park
Here are the buyer items you should expect to budget for:
- Loan application and origination fees from your lender
- Appraisal to support the loan value, often in the $400–$900 range
- Credit report and underwriting fees, typically small
- Lender’s title insurance and settlement/escrow fees
- Inspections suited to older central Denver homes: general, radon, sewer scope, and wood‑destroying organism as needed
- HOA or condo document and transfer fees if applicable to your property
- Recording fees for buyer-side documents with Denver County
- Prepaid items: homeowners insurance, initial mortgage interest, and private mortgage insurance if required
- Property tax prorations starting the day after closing
- Initial escrow deposits for taxes and insurance, often 1–2 months
Seller costs in Congress Park
Sellers typically cover the largest line items:
- Real estate commission, often a combined 5–6% of the sale price, split between brokerages and negotiated per listing
- Owner’s title insurance policy, which is widely customary for sellers in many Colorado deals
- Payoff of existing mortgages and any recorded liens
- Prorated property taxes through the day of closing
- A share of settlement/escrow and recording fees, depending on your contract
- HOA resale or transfer fees for condos, plus any required certificates
- Agreed seller concessions, such as closing cost credits or repair credits within loan program limits
Typical ranges and examples
Use these rules of thumb to start your budget. Your exact numbers will come from your lender and title company.
- Buyers: plan for about 2%–5% of the purchase price, excluding your down payment.
- Sellers: plan for about 6%–10% of the sale price, including commission and typical seller-paid items.
Illustrative examples:
- Single-family home at $700,000
- Buyer closing costs at 2.5%–4%: about $17,500–$28,000
- Seller closing costs at 6%–8%: about $42,000–$56,000 (assumes a 5.5% total commission)
- Condo at $500,000
- Buyer closing costs at 2.5%–4%: about $12,500–$20,000
- Seller closing costs at 6%–8%: about $30,000–$40,000
These are planning numbers. Request quotes for title insurance premiums and settlement fees, and review your lender’s itemized fees on the Loan Estimate.
Condo and HOA considerations
Congress Park includes a mix of single-family homes and condominiums. If you are buying or selling a condo, expect HOA-related costs and timing considerations:
- The seller typically orders the resale certificate and HOA documents. Fees vary by HOA and can range from about $100 to $500 or more.
- Some associations charge a transfer fee at closing. Who pays can be negotiated in your contract.
- Order the HOA resale package early after going under contract to keep the timeline on track.
Taxes, prorations, recording
- Property taxes: Colorado property taxes are prorated at closing. Sellers pay through the day of closing, and buyers cover taxes accruing after that date.
- Transfer and documentary taxes: Colorado does not have a statewide real estate transfer tax. Confirm with your title company whether any local documentary or recording fees apply to your specific transaction in Denver County.
- Recording fees: Denver County charges per document. In a standard deal, total recording costs are usually under a few hundred dollars.
Ways to save on costs
Smart planning can reduce your out-of-pocket expenses.
- Shop lenders and compare multiple Loan Estimates. Look at rate, points, and total cash to close.
- Ask for seller concessions. In some markets and loan programs, the seller can credit part of your closing costs, subject to program caps.
- Consider a lender credit if you need to bring less cash to close. This raises your rate, so weigh the long-term cost.
- Bundle and ask about settlement fees. Some title and escrow fees are negotiable, while title insurance premiums follow regulated rates.
- Request the seller to pay the owner’s title policy. It is a common local negotiation point.
- Time your closing date strategically to manage prepaid interest and tax prorations.
Timeline and key documents
Keep your paperwork organized and deadlines front and center.
- Before you offer: budget for inspections and set aside earnest money.
- Within 3 business days of loan application: review your Loan Estimate and ask about any fees you do not recognize.
- Before closing: request a draft settlement statement from the title company to preview final numbers.
- At least 3 business days before closing: review your Closing Disclosure and compare it to your Loan Estimate.
- Closing day: bring government ID and follow secure wire instructions provided by the title company. Always verify instructions by phone to avoid fraud.
Plan your budget with confidence
Whether you are buying a classic bungalow near the park or selling a sleek condo along 12th Avenue, a clear view of closing costs helps you move forward with certainty. With local norms, realistic ranges, and a strong plan, you can protect your budget and keep your timeline on track. If you would like a tailored buyer cash‑to‑close estimate or a seller net sheet for your Congress Park property, reach out to Molly Weiss for personal guidance.
FAQs
What are typical buyer closing costs in Congress Park?
- Buyers often budget 2%–5% of the purchase price for lender fees, inspections, title, prepaids, and recording.
Who usually pays the owner’s title policy in Denver?
- It is often seller-paid in many Colorado transactions, but it is a negotiable term of your contract.
Are there transfer taxes on Denver home sales?
- Colorado has no statewide real estate transfer tax; confirm any local documentary or recording fees with your title company.
How do property tax prorations work at closing?
- Sellers pay taxes through the day of closing and buyers cover taxes accruing after closing, based on Denver County schedules.
Can a seller cover a buyer’s closing costs?
- Yes, seller credits are negotiable and may be limited by loan program rules such as FHA or VA.
What inspections should Congress Park buyers expect?
- Older central Denver homes often prompt a general inspection plus radon and sewer scope, with WDO as needed.
When will I see final numbers before closing?
- Your lender must provide a Closing Disclosure at least 3 business days before closing; compare it to your Loan Estimate and ask for a final settlement statement from title.
