Aurora Buyer Closing Costs Explained

Buying in Aurora and trying to pin down what you’ll actually bring to closing? You’re not alone. Between lender fees, title charges, and prepaid items, cash to close can feel confusing when you’re budgeting for a home. In this guide, you’ll learn what buyer closing costs typically include in Aurora, realistic ranges to plan for, and simple steps to estimate your total. Let’s dive in.

What closing costs cover in Aurora

Lender fees

These are the costs to set up and approve your mortgage. They may include an origination, underwriting, or processing fee. Some lenders also offer optional discount points, which you can pay to reduce your interest rate. Your lender will provide an itemized Loan Estimate so you can see each charge clearly.

Most loans also require a property appraisal to confirm value. Appraisals commonly run about $300 to $800 depending on the property. You may also see small items such as credit report, flood certification, rate lock, or wire fees.

Title and closing services

A title company handles the closing and ensures clear ownership. You will pay for a lender’s title insurance policy, which protects the lender, and you can choose an owner’s title policy, which protects your equity. Colorado buyers often purchase the owner’s policy for one-time protection.

Title companies also charge a settlement or closing fee to manage the file. Arapahoe County collects recording fees to record your deed and mortgage. These are typically modest, often well under a few hundred dollars total depending on the number of pages.

Prepaid items and escrow reserves

Prepaids are not fees. They are advance payments that set up your new home’s ongoing costs. Expect prorated property taxes, the first year of homeowners insurance, and prepaid interest from your closing date to your first payment date. If your lender sets up an escrow account, you will also fund several months of tax and insurance reserves at closing, plus a small cushion allowed by federal rules.

Inspections and contingencies

You choose inspections during your due diligence period. A general home inspection commonly runs about $300 to $600. Specialty inspections such as radon testing, sewer scope, roof, or pest may add $100 to $500 each. If your home is unique, your lender may require additional inspections or reports.

Other possible buyer costs

• HOA transfer or estoppel fees if the property is in an association, often $150 to $400.
• Survey or well and septic certifications if applicable to the property type.
• In the Denver metro, buyer broker fees are typically paid by the seller, but always confirm your purchase contract so you know exactly who pays what.

Typical ranges and local estimates

A helpful rule of thumb is to plan for buyer closing costs equal to about 2% to 5% of the purchase price, not including your down payment. Where you fall in that range depends on your loan type, title insurance choices, and how many months of escrow reserves your lender collects.

Here are common ranges to expect in Aurora:

• Title insurance and closing fee: several hundred to a few thousand dollars depending on your price and loan amount; settlement fees often $300 to $900.
• Appraisal: about $300 to $800.
• General home inspection: about $300 to $600; specialty tests often $100 to $500 each.
• Recording fees: generally small, often under $100 to $200 total for deed and mortgage, based on documents and page count.
• Prepaid taxes and insurance: varies by closing date and local tax rate; plan for the first year of insurance, tax prorations, and a few months of escrow reserves.
• Prepaid interest: roughly one day of interest for each day between closing and your first payment date.
• HOA transfer/estoppel (if applicable): about $150 to $400.

Sample cash to close scenarios

Use these planning examples to visualize the math. Your final numbers will come from your lender and title company.

• Scenario A, purchase price $350,000 with 5% down: down payment $17,500, closing costs estimated at 3% or $10,500, prepaids about $3,000. Estimated cash to close about $31,000.
• Scenario B, purchase price $500,000 with 10% down: down payment $50,000, closing costs estimated at 3% or $15,000, prepaids about $3,500. Estimated cash to close about $68,500.
• Scenario C, purchase price $700,000 with 20% down: down payment $140,000, closing costs estimated at 2.5% or $17,500, prepaids about $4,500. Estimated cash to close about $162,000.

Arapahoe County specifics to know

• Recording and county procedures: The Arapahoe County Clerk and Recorder will record your deed and mortgage for a per document fee. Expect nominal recording charges that depend on page count.
• Property tax proration: Colorado property taxes are prorated at closing. You will reimburse the seller for the seller’s share that covers the period you will own the home, and you will pay taxes from the closing date forward.
• Transfer taxes: Colorado does not have a uniform statewide real estate transfer tax. Most Aurora buyers do not encounter a separate municipal transfer tax. Confirm with your title company if any documentary or excise charges apply to your transaction.
• HOA prevalence: Many Aurora neighborhoods include HOAs. Budget for an estoppel or transfer certificate that shows dues and status.
• Local inspections: Radon testing is common in the Denver metro. For older homes, sewer scope and pest checks are also common. Budget accordingly.

How to estimate your cash to close

Use this simple formula:

Cash to Close = Down Payment + Closing Costs + Prepaids + Escrow/Reserve Deposits – Seller Credits – Lender Credits.

Follow these steps to get a reliable number:

1. Request at least two Loan Estimates from different lenders using the same scenario. Compare line by line.
2. Ask your title company for a preliminary closing statement that includes lender and owner title premiums, settlement fee, and recording estimates.
3. If the home has an HOA, request the transfer or estoppel fee amount and any special assessment details early.
4. Add inspection costs for the services you plan to order, such as home inspection, radon, or sewer scope.
5. Confirm property tax status and expected tax payment dates so you can estimate prorations and escrow needs.
6. Include any wire fees, and protect yourself by verifying wiring instructions by phone using a known title company number.

Ways to reduce your cash at closing

• Shop your loan. Compare origination and third party fees on the Loan Estimate, not just the interest rate.
• Ask for seller credits. You can request the seller pay specific buyer costs, subject to your loan program’s limits on concessions.
• Consider lender credits instead of paying points. A slightly higher rate can reduce your upfront cash. Compare the long term cost.
• Choose your title options thoughtfully. Many buyers purchase an owner’s policy for peace of mind. If you consider waiving it, review the risks and search coverage carefully.
• Schedule inspections early. If issues arise, you can negotiate repairs or credits while you still have leverage.

Timeline and what to expect

• Loan Estimate: Your lender must provide it within three business days of application. It outlines your rate, payment, and early closing cost estimate.
• Closing Disclosure: You will receive it at least three business days before closing. Review it against your Loan Estimate and ask questions about any changes.
• Closing timeframe: In Aurora, a typical closing takes about 30 to 45 days for conventional loans, depending on appraisal timing, title clearance, and HOA documents.

Buying a home in Aurora is a big step, and understanding the numbers makes it far less stressful. If you want a hands-on guide who will help you compare estimates, watch for savings, and keep your closing on track, connect with Michael Todd. Se habla español. Schedule a free consultation with Michael Todd.

FAQs

How much should a first-time Aurora buyer save for closing costs?

• Plan for about 2% to 5% of the purchase price for closing costs, plus your down payment and a cushion for prepaids like taxes and insurance.

Do buyers in Aurora always pay all closing costs?

• Not always; you can negotiate seller credits or ask the seller to cover certain fees, subject to loan program limits on concessions.

What closing costs are most unpredictable for Aurora homes?

• Inspection findings, HOA special assessments, title issues, and the number of escrow months your lender collects can shift your final total.

When will I receive my final cash-to-close number?

• Your Closing Disclosure arrives at least three business days before closing and shows your final costs and cash due.

Can I lower upfront costs without increasing risk too much?

• You can compare lenders for lower fees, request seller credits, and evaluate a lender credit for a slightly higher rate while keeping prudent protections like owner’s title insurance.