Down payment
Your contribution toward the purchase price.
PLAN THE UPFRONT NUMBERS
Colorado Closing Costs & Cash to Close
Know the cash. Keep your cushion.
The down payment gets the attention. The rest of the closing budget deserves a seat at the table. Here’s how to separate the pieces so you can plan the move without emptying every account.
Start here
Cash to close is not the same as closing costs. It reflects your down payment and transaction costs, adjusted for deposits, eligible credits and other items. Money you want or need to keep after closing belongs in a separate budget.
A sample cost calculation
$12,000
Assumed eligible costs and prepaid items
−$7,000
Permitted, usable seller credit
$5,000
Eligible costs remaining before other transaction items
One part of cash to close
One budget. Five different buckets.
Loan and settlement costs
Lender charges, title, appraisal and other transaction costs.
Prepaids and escrow
Items such as insurance, prepaid interest and starting escrow deposits.
Credits and deposits
Earnest money already paid and eligible contributions applied at closing.
After-closing cushion
Moving expenses, repairs and savings you want or are required to keep.
Here is what the sample actually means.
Illustration only: assume $12,000 in eligible transaction costs and prepaid items, with a $7,000 seller credit that the loan team has confirmed is permitted and usable. That leaves $5,000 of these eligible costs for the buyer. These are educational assumptions, not a property-specific fee quote, contribution limit or loan offer.
This is only one part of cash to close. Add your actual down payment, account for deposits already paid, and reconcile other credits, prorations and adjustments using your Loan Estimate or Closing Disclosure. Include each amount only once.
| Calculation | Amount |
|---|---|
| Assumed eligible costs and prepaid items | $12,000 |
| Less permitted, usable seller credit | −$7,000 |
| Eligible costs remaining for the buyer | $5,000 |
The seller credit does not replace your down payment, and a deposit already paid is not an additional discount. Required reserves, if any, and the savings you want for moving, repairs and emergencies belong in a separate after-closing plan. Ask Cederholm Mortgage Advisors to connect the cost calculation with the complete funds-due figure on your disclosure.
Colorado details deserve address-level attention.
A statewide percentage is a rough placeholder. For the house you actually want, ask about the county tax information, any metropolitan or other special district charges, insurance quote, HOA dues and transfer or working-capital charges.
Have the settlement team explain prorations and any locally applicable transfer charges. A new-build tax estimate may not yet reflect a completed home. Confirm what each estimate assumes rather than borrowing the seller’s current payment.
Before sending the final funds.
- Compare the final Closing Disclosure with the latest Loan Estimate.
- Ask which charges changed and why.
- Confirm the source and timing of your funds with the lender.
- Verify wiring instructions with the settlement company using an independently confirmed phone number.
- Keep your moving budget separate from funds required for the loan.
Questions worth asking
Can seller credits cover my down payment?
Generally, ordinary seller credits cover eligible transaction costs rather than your required down payment. Program limits, actual costs and lender rules determine usable credit.
Are reserves paid to the lender?
Generally, reserves are qualifying assets remaining after closing rather than a fee paid to the lender. The amount and eligible asset types vary.
Why can cash to close change?
Updated insurance, taxes, loan terms, credits, prorations or transaction details can change the calculation. Ask for a line-by-line explanation.
Is this sample a Colorado fee quote?
No. The numbers illustrate the calculation, not customary charges for your property or a quote from our team.
Sources and information
Information is educational and is not a loan offer, rate quote, approval or commitment to lend. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Hypothetical examples are not client testimonials or guaranteed results.
Let’s make your next step clearer.
Bring your Loan Estimate or Closing Disclosure and tell us when you plan to move. Cederholm Mortgage Advisors can help explain the line items, reconcile deposits and eligible credits, and plan for funds due at closing alongside the savings you want to keep afterward.
Know what is still due, and what stays yours
Use your actual Loan Estimate or Closing Disclosure for the figures. Keep money already paid separate from money you still need at closing.
| What to record | Your notes |
|---|---|
| Down payment | Write the amount for the loan being compared. |
| Loan and settlement costs | Record loan and settlement charges, excluding the prepaids and initial escrow you list separately below. Note any changes. |
| Prepaids and initial escrow | List these separately from loan and settlement charges when building this worksheet. Include each amount only once. |
| Deposits and eligible credits | Subtract deposits already paid and credits that are permitted, usable and not already reflected in the costs you recorded. |
| Cash still due | Down payment + loan/settlement charges + prepaids/initial escrow − paid deposits − usable credits not already reflected, adjusted for other transaction items. |
| Money kept after closing | Set a separate target for moving, repairs, emergencies and any required reserves. |
If you start with the “Total Closing Costs” figure from your disclosure, do not add prepaids or initial escrow again when they are already included. Do not subtract a lender or seller credit again if it has already reduced a cost you recorded. Our team can help reconcile the worksheet with the disclosure’s cash-to-close calculation.
Bring the worksheet and ask us to explain any line you cannot match to your disclosure. This is a planning aid, not a property-specific fee quote.
Read more: the CFPB Closing Disclosure explainer.
What happens next? The button below opens our secure loan inquiry. Tell us your goal and timing so we can discuss the relevant costs, documents and options. Prefer a conversation first? Call 303-931-6798 or contact our team. Share sensitive documents only through the secure channel we provide. A conversation is not a loan approval or commitment.