Not sure how much cash to bring to closing in Cortez? Between lender fees, title charges, and rural inspections, it can feel like a moving target. You want a clear, local answer so you can budget with confidence and avoid surprises. In this guide, you’ll learn what closing costs include, typical totals in Montezuma County, who usually pays what, and how to estimate your cash to close. Let’s dive in.
What closing costs include in Cortez
Closing costs are the one-time expenses and prepaids you pay to finalize your purchase. They are separate from your down payment. In Cortez and across Colorado, these typically cover:
- Lender charges such as origination, underwriting, processing, credit report, and appraisal.
- Title and escrow services, including title insurance and closing fees.
- County recording fees for your deed and mortgage.
- Prepaid items like property taxes, homeowner’s insurance, and prepaid interest.
- Inspections and due diligence such as home, septic, and well.
- Escrow or impound reserves your lender may require for taxes and insurance.
Typical totals in Montezuma County
Most Colorado buyers plan for about 2 to 5% of the purchase price for closing costs and prepaids, not counting the down payment. The exact amount varies by loan program, property type, and what you negotiate with the seller.
For example, on a $300,000 purchase, a planning range of $6,000 to $15,000 is common for closing costs and prepaids. Your actual figure will depend on items like inspections, whether the property has a well or septic system, and any seller or lender credits you receive.
What Colorado buyers usually pay
Lender charges
Most buyers pay their lender’s origination, underwriting, and processing fees. You also pay for the appraisal, credit report, and small third-party verifications such as flood certification or tax service. Some buyers choose to pay discount points to lower the interest rate.
Title and escrow fees
If you finance, you usually pay for the lender’s title insurance policy. The owner’s title policy is negotiable; in many Colorado markets, sellers often pay for it, but local practice can vary in Montezuma County. Buyers commonly pay at least a share of closing or escrow fees.
Government and county fees
You can expect county recording fees for the deed and the mortgage. Allocation of the deed recording fee is based on local custom and negotiation. Colorado does not have a statewide real estate transfer tax. Check with the local title company for current recording practices in Montezuma County.
Prepaids collected at closing
Your lender will require proof of a paid first-year homeowner’s insurance premium. You will also prepay interest from your closing date to the start of your first mortgage payment, plus prorated property taxes and any homeowner association dues, if applicable.
Inspections and due diligence
Buyers usually pay for a general home inspection. In rural parts of Montezuma County, you should budget for septic and well inspections, plus any specialty checks your lender requires. A survey or location certificate may be advisable for boundary clarity.
Escrow or impound reserves
Many lenders set up an escrow account for property taxes and insurance. Expect a few months of reserves at closing, plus a small cushion, depending on your loan type and closing date.
Cortez-specific factors to budget
- Rural services. Many properties outside town rely on private wells and septic systems. Plan for septic inspections and well flow tests, and verify permits or records as needed.
- HOAs and special districts. Some properties fall within an HOA or district. Ask for the resale certificate and budget for prorations, transfer fees, or any special assessments.
- Property tax proration. Taxes are handled at the county level and prorated at closing based on the most recent figures. Ask the title company or county treasurer how proration will be calculated for your date.
- Recording fees. Recording charges are set by the Montezuma County Recorder. These are relatively small flat fees, but you should verify current amounts with your title company.
- Loan program requirements. FHA, VA, USDA, and conventional loans have different rules for property eligibility, appraisals, and escrow accounts. These can affect inspections and reserves.
Who pays what in Cortez
- Lender’s title policy: Typically paid by the buyer when there is a loan.
- Owner’s title policy: In many Colorado markets this is often paid by the seller, but it is negotiable. Confirm the local custom with your title company.
- Recording fees: Buyers usually pay to record the mortgage. Allocation of the deed recording fee depends on local practice and negotiation.
- Inspections: Generally paid by the buyer unless negotiated otherwise.
- Seller credits: You can negotiate for the seller to help with closing costs. Your loan program may cap the amount, so check with your lender.
How to estimate cash to close
A simple way to frame it is:
Cash to close = Down payment + Buyer closing costs + Prepaids and escrow reserves − Seller or lender credits.
Ask your lender and title company for written estimates so you can run the numbers early.
What to request from your team
- From your lender: A Loan Estimate for your loan type and price point in Montezuma County. Ask them to include lender fees and expected escrow reserves.
- From your title company: An itemized buyer estimate showing title premiums, recording charges, and proration assumptions.
- From local inspectors: Quotes for home, septic, and well inspections if the property is rural.
Sample questions to use
- “Please provide a Loan Estimate for a [loan program] on a $___ purchase in Montezuma County with ___% down and a target closing date of ___. Include lender fees and escrow reserves.”
- “What are the deed and mortgage recording fees for Montezuma County, and how are they typically allocated?”
- “In Cortez, is it customary for sellers to pay the owner’s title policy? What are your buyer-side escrow fees?”
- “Are there HOA or special-district transfer fees or assessments that could affect closing?”
Timing and payment logistics
- Insurance and interest. Expect to pay the first year of homeowner’s insurance at closing. Your prepaid interest will depend on your closing date and first payment date.
- Escrow setup. Many loans fund a few months of taxes and insurance at closing. The amount varies with the calendar and your lender’s guidelines.
- Wiring funds. Always verify wiring instructions with your title company using a trusted phone number you obtain independently. Wire fraud is a real risk, so confirm before you send funds.
First-time rural buyer checklist
- Budget for septic and well inspections, and confirm permits or records.
- Ask about road maintenance agreements and access or right-of-way details.
- Consider a survey or location certificate for boundary clarity.
- Request HOA or special-district documents early, including any transfer fees.
- Confirm lender requirements for rural and acreage properties.
Work with a local guide
Closing costs in Cortez are manageable when you know what to expect and have the right team. With local title and lender partners, you can get firm numbers early and avoid last-minute surprises. If you are relocating, remote, or buying your first Colorado home, you deserve clear answers and a steady process from contract to keys.
Have questions about your budget or a specific property in Montezuma County? Connect with Holly Matson to get a local, itemized plan and next steps.
FAQs
What are typical closing costs for Cortez buyers?
- Plan for about 2 to 5% of the purchase price for closing costs and prepaids, not including your down payment; confirm your exact number with your lender and title company.
Do Colorado buyers pay a transfer tax in Cortez?
- Colorado does not have a statewide real estate transfer tax; you will see county recording fees and any applicable local assessments confirmed by the title company.
Who pays the owner’s title policy in Montezuma County?
- In many Colorado markets the seller often pays for the owner’s title policy, but this is negotiable; confirm local custom with your title company in Cortez.
How much should I budget on a $300,000 Cortez home?
- A planning range of $6,000 to $15,000 for closing costs and prepaids is common, with the actual amount depending on loan program, inspections, and any credits.
What rural inspections should I expect near Cortez?
- Budget for septic and well inspections, and consider a survey and access verification; costs vary with property complexity and lender requirements.
Can a seller help pay my closing costs in Colorado?
- Yes; seller credits are negotiable, though loan programs set limits on how much the seller can contribute, so check with your lender.
When will I see my final cash-to-close number?
- You should receive a Loan Estimate early in the process and a Closing Disclosure before settlement; review the itemized figures with your title company to confirm the wire amount.
