Home prices in the Denver, Colorado metropolitan area have risen steadily over the last couple of years. As a result, home buyers are facing higher closing costs along with larger down payments. Here’s an updated look at the median and average closing costs for Denver buyers, based on current prices and data for this market.
Closing Costs for Denver Buyers, Fall 2017
“Closing costs” is a collective term for the different fees and charges that are paid when you obtain a mortgage loan to buy a home. These fees are charged by various individuals and companies that are involved with the transaction, including the mortgage lender, real estate agents, and other third parties.
Typical costs encountered during a home purchase can include:
- Appraisal fees
- Credit report fees
- Government recording fees
- Lender origination fees
- Title-related services
- Property surveys
- Attorney fees
According to the Denver Metro Association of Realtors, the median sale price for homes sold in the area was around $380,000 during the summer of 2017. The real estate information website Zillow reported a median value of $386,700, as of September. Averaging these numbers would give us a home price of $383,350.
On average, home buyers in Denver typically pay between 2% and 5% of the purchase price in closing costs. Using a median home price of $383,350, that means Denver home buyers might encounter closing costs ranging from $7,667 to $19,167, as of September 2017.
But again, there are many variables that can affect the amount you pay in closing costs. If you’d like, we can provide you with an estimate of your monthly mortgage payments as well as your closing costs. Please contact our staff if you have questions about applying for a mortgage loan in Denver.
An Updated Look at Down Payments
According to recent reports, home prices in Denver have risen by around 8% over the last 12 months. As a result, buyers are seeing higher closing costs as well as larger down payments. Here’s what the average down payment in Denver might look like today, based on current home values.
- FHA — The minimum required investment for an FHA loan in Denver is 3.5% of the purchase price. Using the median home value of $383,350 mentioned earlier, that would equal a down payment of around $13,417. (To qualify for the 3.5% option, borrowers need a credit score of 580 or higher.)
- Conventional — The minimum required down payment for a conventional loan typically ranges from 3% to 5%. Using the median home price figure, that would mean a down payment between $11,500 and $19,167.
These are just averages and median figures to give you some sense of what a down payment would look like in Denver, as of fall 2017. Your investment could differ based on several factors, including the type of loan you use and the price of the home.