Buying in Littleton and trying to pin down what your closing costs will be? You’re not alone. It’s easy to focus on the down payment and forget the other line items that show up on the Closing Disclosure. In this guide, you’ll learn what buyers in Littleton typically pay, who covers what in Colorado custom, how much to budget, and ways to lower your cash to close. Let’s dive in.
What your closing costs include
Closing costs are the one-time expenses due at settlement, separate from your down payment. In Littleton, the main buckets are loan-related fees, title and settlement charges, prepaids and escrow deposits, taxes and assessments, inspections, HOA or municipal fees, and any negotiated items.
Loan-related fees
- Loan origination or lender admin fee: often 0.5%-1.5% of the loan amount, or a flat fee.
- Discount points: optional. One point equals 1% of the loan to buy down your rate.
- Underwriting, processing, credit report, and application fees: typically $50-$700 combined.
- Appraisal: commonly $450-$700 for a typical single-family in the Denver metro, higher for complex properties.
- Any lender-required inspections or eligibility checks, if applicable.
Title and settlement charges
- Owner’s title insurance policy: customarily paid by the seller in Colorado. If you agree to pay, expect a premium that scales with price.
- Lender’s title policy: buyer-paid; usually in the low hundreds to low thousands depending on loan amount.
- Closing or escrow fee: often $300-$800, sometimes split between buyer and seller.
- Recording fees for the deed and mortgage: typically tens to a few hundred dollars.
- Title endorsements and document prep, if needed.
Prepaids and escrow deposits
- Prepaid interest: covers interest from closing through the start of your first payment; depends on the day of the month you close.
- Homeowners insurance: your lender will require proof; many buyers pay the first-year premium at closing.
- Initial escrow deposits: lenders commonly collect 2-3 months of taxes and insurance, plus a standard cushion.
Property taxes and assessments
- Property tax proration: you and the seller each pay your share based on how long each party owns the home during the tax year.
- Special district or metro district amounts may be prorated or paid at closing if applicable to the property.
Inspections and reports
- General home inspection: about $300-$600 in Littleton.
- Pest inspection: about $50-$200.
- Radon testing: about $150-$250.
- Sewer scope: about $125-$300. Roof, HVAC, septic, or well inspections may be advised depending on the property.
HOA and municipal items
- HOA transfer or resale document fees: often $150-$400 or more, if the property is in an HOA.
- Pro-rated HOA dues: you may reimburse the seller for the portion of the month you will own the home.
- Utility transfer or local service charges, where applicable.
Miscellaneous and negotiated items
- Seller concessions or credits: negotiated to offset your closing costs.
- Home warranty: optional, typically $350-$700, sometimes seller-paid.
- Any payoffs or title curatives needed to clear closing.
Who typically pays what in Colorado
Colorado custom generally splits costs this way:
- Seller: customarily pays the owner’s title insurance policy and seller-side expenses like real estate commission. Some municipal or recording charges may also be seller-side depending on contract and local practice.
- Buyer: typically pays loan fees, appraisal, lender’s title policy, recording of the mortgage, inspections, prepaids, and initial escrow deposits.
HOA administration or transfer fees often land with the buyer, but confirm with the specific association and your contract. Customs can vary by neighborhood and market conditions, so negotiate what makes sense for your deal.
How much to budget
Every loan and property are different, but these planning ranges help:
- Lender and third-party fees, excluding down payment and escrow deposits: typically about 2%-3% of the purchase price when financing.
- Closing costs plus prepaids and escrow deposits, in addition to your down payment: a common estimate is 2%-5% of the purchase price.
Example scenario (illustrative only)
- Purchase price: $450,000
- Down payment at 5%: $22,500
- Lender/title/third-party costs and inspections at 2.5%: $11,250
- Initial escrow deposits and prepaid interest at 0.5%-1%: $2,250-$4,500
- Estimated total cash to close: about $36,000-$38,250. This shows how cash to close often exceeds the down payment once you add prepaids and escrows.
First-time buyers using low-down programs should also plan for mortgage insurance costs. Move-up and jumbo buyers should expect the dollar amounts to scale with price.
Cash to close vs. down payment
Your down payment reduces the purchase price. Your cash to close is the full amount you bring to closing after all credits are applied.
- Cash to close = Down payment + Closing costs + Prepaids + Initial escrow deposits − Credits (earnest money, seller concessions, lender credits).
- Earnest money counts toward your cash to close at settlement.
- You’ll receive a Loan Estimate within 3 business days of loan application and a Closing Disclosure at least 3 business days before closing. Both show line-by-line costs and the running total.
Littleton and Arapahoe County specifics
Local items can influence your final number:
- Recording fees follow a county schedule and are known in advance per document.
- Property tax prorations depend on assessed value, the tax calendar, and whether taxes are current at closing.
- Special districts and metro districts are common around Littleton and can add prorations or assessments that appear on your closing statement.
- HOA communities may charge for resale certificates and other administrative work.
To avoid surprises, request quotes from the title company and HOA early, and review the title report for any districts or assessments tied to the property.
Winter vs. spring: timing matters
- Winter: the pace can be slower. Buyers often negotiate more seller concessions that reduce cash to close. Inspections can take longer to schedule.
- Spring: competition typically increases. Sellers may accept fewer closing cost credits, and buyers should be ready to pay more customary items.
- Closing date effects: prepaids like interest and tax escrows change with timing. For example, closing later in the month can reduce prepaid interest.
How to get accurate numbers early
Use this quick checklist to forecast confidently:
- Get a Loan Estimate from at least one lender, and compare at least two lenders.
- Ask the title company for a quote for the lender’s policy, endorsements, closing fee, and county recording charges.
- If there is an HOA, request the resale certificate fee and any buyer transfer charges.
- Budget for inspections: home, radon, sewer, pest, and any specialty reports.
- Ask your lender for an escrow worksheet that shows expected tax and insurance deposits.
- Subtract your earnest money deposit and any lender or seller credits to see the remaining cash to close.
- Build a 2%-3% contingency buffer for prorations, endorsements, or last-minute changes.
- Plan certified funds or a wire for closing. Always verify wire instructions directly with the title company to avoid fraud.
Ways to lower your cash to close
- Negotiate seller concessions, especially in slower months or on longer-days-on-market listings.
- Compare lenders and consider a lender credit in exchange for a slightly higher rate.
- Evaluate points vs. credits to optimize upfront vs. monthly costs.
- Shop homeowners insurance to manage your first-year premium and escrow needs.
- Choose a closing date that fits your cash-flow plan for prepaid interest and escrows.
What to bring to closing
- Government-issued photo ID.
- Certified funds or wire confirmation, as directed by the title company.
- Proof of homeowners insurance or a paid binder.
- Any documents your lender or title officer specifically requests.
Let’s plan your Littleton purchase
Closing costs do not have to be a mystery. With the right estimates and a smart strategy, you can set a clear target for your cash to close and focus on getting the home you love. If you want a personalized breakdown based on your price point and loan type, reach out to Nick Evancich. We’ll help you forecast with confidence, negotiate strategically, and move from offer to keys without surprises.
FAQs
How much do Littleton buyers typically pay in closing costs?
- When financing, plan for closing costs, prepaids, and escrow deposits equal to about 2%-5% of the purchase price, on top of your down payment.
Who pays for owner’s title insurance in Colorado?
- Colorado custom is for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy and loan-side title costs. This is negotiable in your contract.
What’s the difference between down payment and cash to close?
- Your cash to close includes your down payment plus closing costs, prepaids, and initial escrow deposits, minus credits like earnest money, seller concessions, and lender credits.
Can the seller cover my closing costs in Littleton?
- Yes. Seller concessions are negotiable and subject to loan program limits. Market conditions influence how often sellers agree.
When will I know my exact number to bring to closing?
- Your lender must provide a Closing Disclosure at least 3 business days before closing. It lists the final cash to close and all line items.
Does Colorado charge a statewide real estate transfer tax?
- No widely applied statewide transfer tax exists in Colorado. Expect county recording fees and any property-specific local or special district charges instead.
