With the housing market varying so much across the country, many people assume that mortgage interest rates vary greatly from state-to-state as well. While there may be slight variations in mortgage interest rates, they are generally the same. Consequently, Colorado mortgage rates are as competitive as those in any other state.

There can be, however, significant differences in closing costs and procedures across the nation. So, when you apply for your mortgage, don’t forget to factor in closing costs or your hard work to find a competitive Colorado mortgage rate may be tempered by unforeseen closing costs.

What Closing Is

Before you try to discern the differences in closing costs, you must first understand what “closing” is. Closing is the final step before you take ownership of your home. During the closing, you will sign mortgage loan documents, transfer funds (escrow, insurance, etc…), and receive the deed to your property.

Closing Costs

Colorado closing costs—at around $2728–are only slightly higher than the national average. Typically, closing costs cover the following items:
o Lender Fee
o Title Insurance
o Title Search Fee
o State Mortgage Taxes
o Settlement Charge
o Escrow
o Settlement or Closing Fee
o Attorney’s Fee
o Flood Insurance Fee
o Home Warranty Fee
o Home Inspection Fee
o Survey Fee
o Notary Fee
o Recording Fee
o Interest
o Lender Fees/Charges

Closing in Colorado

Closing procedures vary as much as closing costs. Whether you are a first-time homeowner—or a newcomer to Colorado, knowing what to expect at closing will make the process much easier and less stressful.

In Colorado, title companies, brokers, and attorneys all may handle closings. Who handles your closing will partially determine how high your closing costs are. For example, an attorney-managed closing will cost more than one held at a title company.

Closing costs are negotiable between the buyers and sellers. However, sellers typically pay the title insurance premium and the documentary transfer tax.

No matter what state you buy your home in, having a general idea of the closing costs and procedures specific to your area will ensure that you are well prepared for the final step in purchasing your home. Remember, you spent a great deal of time finding the best mortgage rates in Colorado. Don’t let unexpected closing costs ruin what can be a gratifying and rewarding experience—buying your home.