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When you buy a home in Denver, you’ll be paying more than just mortgage payments. There are also closing costs to factor into the equation. But how much can you expect to pay in closing costs in Denver? This article will go over what these closing costs are.
Buying a home is a huge expense. But in addition to the purchase price that you will have to contend with and the hefty mortgage payments that come with it, there are also other costs you need to consider, and these include closing costs.
But don’t fret: as long as you budget accordingly, there’s no reason why you can’t cover the cost of these expenses that you will encounter at closing.
So, how much are home buyer closing costs in Denver? If you use the current median sales price for homes in Denver, along with the typical 3% to 5% that buyers pay in closing costs, you’d end up with a range of $17,384 to $28,973 based on today’s average home price of $579,471 in Denver.
But there are a lot of variables that could affect your bottom line. Please contact us if you’d like a more precise estimate tailored to your situation.
Home prices across the Denver, Colorado metro area have risen steadily over the last few years. As a result of this trend, home buyers could encounter higher closing costs in 2023 than in years past.
“Closing costs” is actually a collective term for the various fees and charges that can accumulate when a person buys a home with a mortgage loan. Some of these costs come from the mortgage lender, while others come from third parties such as title companies, credit reporting agencies, and even local government.
Home buyers in Denver can expect to pay somewhere between 3% and 5% of the home’s value in closing costs. Some might end up paying more or less than that, because there are many variables. But 3% to 5% is a pretty good range to work with, when determining the average closing costs for home buyers in Denver.
According to the real estate information company Zillow, the median home value for Denver, Colorado declined by 3.3% over the last 12 months (as reported in June 2023).
And because closing costs are partly influenced by the price of the home and the size of the mortgage loan, this means home buyers in Denver are paying slightly more in closing costs (on average) than those who purchased a house last year.
According to Zillow, the median list price for single family residential homes in June 2023 is $579,471.
Median home prices are generally viewed as a better indicator of current market prices, because they are less skewed by “outliers,” like a really expensive home that sold recently. So we will use the median figure to gain some insight into Denver home buyer closing costs in 2023.
That gives us a ballpark range of what home buyers might pay to close on a median-priced home in Denver, as of June 2023. A more expensive property would likely result in higher overall costs.
There are a number of things that can contribute to your overall closing costs, including the following:
Of course, not all of these may be applicable to you, but they are examples of fees that you may have to cover upfront when you close on a home.
These are just averages and medians. There are a lot of variables that can affect how much a home buyer/borrower will pay in closing costs.
For instance, some borrowers choose to pay “discount points” to secure a lower mortgage rate. While others might skip paying points in order to keep their closing costs low. That’s just one of several variables that can affect the total amount a person pays to close on a home in Denver.
Your mortgage broker will be able to provide you with a clear idea of what you can expect to pay in closing costs based on all the particulars of a deal you may be entering into. They will consider the purchase price of the home, and all the
At Sammamish Mortgage, we’ve been helping Denver home buyers with all of their mortgage needs for many years and can help you determine how much you can expect to pay in closing costs, as well as what your overall monthly housing expenses will be. We offer a variety of mortgage programs for borrowers in Colorado, as well as in Washington, Idaho, California and Oregon, since 1992. Get in touch with us today and we’d be happy to answer any questions you may have.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.