What closing costs do Denver buyers pay beyond the down payment?
Buyer closing costs in Denver cover lender and title charges plus prepaid insurance, interest, and an escrow deposit. Colorado’s property tax timing also puts a seller credit on your statement that most buyers don’t expect.
For example, say you’re buying a $650,000 home in Denver with 20% down. You’ve spent a year saving the $130,000. Then your Closing Disclosure arrives, and the cash-to-close line is higher than your down payment by thousands of dollars.
Some of that is lender and title fees. A lot of it is money you’re paying ahead: a year of homeowners insurance, a few weeks of interest, and a starter balance for your escrow account. And near the bottom sits a credit from the seller for property taxes, because Colorado taxes run a year behind.
This post shows each piece, who pays what under the Colorado contract, and a worked example on that $650,000 Denver home.
When You’ll See the Numbers
Federal rules give you two documents. According to the CFPB, your lender sends a Loan Estimate within three business days of receiving your application. You must receive the Closing Disclosure at least three business days before closing.
Compare the two line by line. The CFPB’s Your home loan toolkit, last updated July 2026, puts it plainly: closing costs are only part of the total cash you bring to closing.
Lender and Title Charges
Your Loan Estimate groups loan costs into sections. Section A holds origination charges, the fees your lender charges to make the loan. Section B covers services your lender requires that you can’t shop for, such as the appraisal and credit report. Section C lists services you can shop for, including title and settlement fees.
The lender’s title policy protects your lender and lands in your loan costs. The owner’s title policy protects you, and the CFPB toolkit notes it’s optional on the federal form.
In Colorado, the contract decides who buys it. The Colorado Real Estate Commission’s residential Contract to Buy and Sell Real Estate (mandatory for use on and after January 1, 2026) gives two options in section 8.1. If the seller selects the title company, the seller furnishes the owner’s policy at the seller’s expense. If you select it, you pay. Extra premium for extended coverage (OEC) is split however the contract’s checkbox says.
The closing services fee works the same way. Section 15.2 says it’s paid by the buyer, the seller, half each, or another arrangement, as checked.
Prepaids and Your Escrow Account
Prepaids are bills you pay in advance at closing. The CFPB lists property taxes, homeowners insurance, and interest until your first payment is due. Homeowners insurance is often paid for the first full year up front.
Prepaid interest covers the days from closing to the end of that month.
If your loan has an escrow account, you’ll also fund it at closing. Under federal Regulation X (12 CFR 1024.17), the lender can collect for taxes and insurance that will come due, plus a cushion of no more than one-sixth of the estimated yearly escrow payments. That’s two months’ worth. Your Initial Escrow Statement shows the full deposit.
Colorado Property Taxes Run a Year Behind
Colorado property taxes are paid in arrears. The Jefferson County Treasurer explains that taxes are paid one year in arrears, so the statement covers the previous year. In the City and County of Denver, the Treasury’s property tax calendar lists the first half due the last day of February, the second half due June 15, or full payment due April 30.
So if you close in November 2026, the seller has owned the home most of 2026, and nobody has paid 2026 taxes yet. Section 16.1.1 of the Colorado contract prorates taxes to the closing date, based on the prior year’s taxes or the most recent mill levy and valuation, whichever box is checked. The seller credits you for their share.
That credit is real money. You’ll still owe the full 2026 bill in 2027 as the new owner, often paid through your escrow account.
Colorado’s State Documentary Fee
Colorado charges a documentary fee when a deed records. Under C.R.S. 39-13-102, the rate is one cent for each $100 of consideration when the price is over $500. The county clerk and recorder collects it on top of regular recording fees.
On a $650,000 sale, that’s $65. Your closer will show it on the settlement statement.
HOA Fees on a Condo or Townhome
Buying in a Denver condo building or a townhome community adds association charges. The Colorado contract handles them in section 15.3:
- The fee for the association’s status letter is paid by the seller.
- Any record change fee is paid by the buyer, the seller, or half each, as checked.
- Reserves or working capital due at closing are paid by the buyer, the seller, a split, or marked N/A.
Section 7.3.5 requires the seller to disclose any transfer fees the association will charge at closing. Prorated dues also show on your statement.
Buyer Agent Compensation
Your agreement with your own agent can add one more cost, depending on what you negotiate. See who pays the buyer’s agent in Colorado for how that works.
A Worked Example on a $650,000 Denver Home
This is an example only, using an assumed price, loan, rate, tax bill, and insurance premium. It isn’t a quote. Assumptions: $650,000 price, 20% down, a $520,000 loan at an assumed 6.5%, closing November 20, last year’s taxes of $3,900, and a $2,400 yearly insurance premium.
| Item | Example amount | Where it comes from |
|---|---|---|
| State documentary fee | $65 | One cent per $100 under C.R.S. 39-13-102 |
| Homeowners insurance, first year | $2,400 | Assumed premium |
| Prepaid interest, November 20 to 30 | about $1,019 | 11 days on $520,000 at an assumed 6.5% |
| Escrow cushion | up to $1,050 | One-sixth of $6,300 in yearly taxes and insurance |
| Lender, appraisal, title, and closing fees | From your Loan Estimate | Sections A, B, and C |
| Property tax credit from the seller | about $3,460 credit | $3,900 prorated through November 20 |
In this example, the items above add up to about $4,534 before lender and title fees. The seller’s tax credit brings that down to roughly $1,070. Then add the lender and title figures from your own Loan Estimate, and any HOA charges.
Close on November 3 instead, and prepaid interest climbs to 28 days, about $2,593. The seller’s credit shrinks a little too, because they owned the home fewer days.
Your credit, prepaid interest, and escrow deposit all move with the closing date you write into the contract.
Working Through It With a Local Agent
Jamie Bridges, a REALTOR® with Keller Williams Realty DTC, holds the Accredited Buyer’s Representative (ABR) designation and works with buyers across Denver and the Denver Metro Area, from Park Hill and Platt Park to Lakewood and Aurora. Before you write an offer, he walks through the contract boxes that move money: who picks the title company, how the closing services fee splits, and which tax proration basis applies. You’ll know which costs are fixed before you sign.
This isn’t legal, tax, or lending advice. A lender you choose can give you a Loan Estimate, and an attorney or CPA can answer contract and tax questions.
Frequently Asked Questions
Who pays for the owner’s title policy in Colorado? The Colorado Real Estate Commission’s residential contract ties it to who selects the title company. If the seller selects it, the seller pays for the owner’s policy. If the buyer selects it, the buyer pays. Any extra premium for extended coverage is split as the contract states.
Why does the seller give me a property tax credit at closing in Denver? Colorado property taxes are paid a year in arrears. The seller’s share of the current year’s taxes hasn’t been billed yet, so the contract prorates it to the closing date and credits you. You then pay the full bill the following year.
When will I know my final closing costs? You’ll see estimates on your Loan Estimate within three business days of applying. The final figures come on your Closing Disclosure, which you must receive at least three business days before closing.
Jamie can walk you through an estimate built on your price and your loan before you write an offer. Jamie Bridges is a REALTOR® with Keller Williams Realty DTC serving the Denver Metro Area and Summit County, Colorado. Call or text Jamie at 720-397-7555 to talk about your next move.
Sources: CFPB, What documents should I receive before closing on a mortgage loan? (last reviewed April 3, 2024), accessed November 6, 2026; CFPB, When do I get a Closing Disclosure? (last reviewed August 8, 2024), accessed November 6, 2026; CFPB, What fees or charges are paid when closing on a mortgage and who pays them? (last reviewed September 11, 2024), accessed November 6, 2026; CFPB, Your home loan toolkit, last updated July 2026; Regulation X, 12 CFR 1024.17, Escrow accounts, current regulation, accessed November 6, 2026; Colorado Real Estate Commission, Contract to Buy and Sell Real Estate (Residential), CBS1, adopted August 5, 2025, mandatory use January 1, 2026; C.R.S. 39-13-102, documentary fee, current through Fall 2025, accessed November 6, 2026; Jefferson County Treasurer, Property Taxes, accessed November 6, 2026; City and County of Denver Treasury, Property Tax Calendar, accessed November 6, 2026. Data deemed reliable but not guaranteed. General information only. This isn’t legal, tax, or lending advice. Talk with a lender, attorney, or CPA about your situation. Dollar figures are examples only.
