Monument CO Closing Costs: A Clear Guide for Buyers

Buying in Monument and not sure how much cash you will need at the closing table? You are not alone. Closing costs can feel murky, especially with metro districts, HOAs, and county-specific fees in the mix. In this guide, you will see what closing costs typically include, who commonly pays what in Colorado, and how Monument’s local details affect your bottom line. Let’s dive in.

What closing costs include

Closing costs are the one-time charges you pay at settlement, plus a few prepaid items set up for your loan. These are separate from your down payment and your monthly mortgage.

Loan-related fees

• Lender charges: underwriting, processing, and origination. These may show as a flat fee or as points.
• Discount points: optional fees that can lower your rate.
• Small items: credit report and document prep fees.

Title and settlement

• Lender’s title policy: typically paid by the buyer when there is a mortgage.
• Owner’s title policy: often paid by the seller in Colorado, but this is negotiable.
• Settlement/closing fee and notary services.

Recording and county

• Recording the deed of trust and deed with El Paso County.
• Colorado does not have a state transfer tax, but county recording fees still apply.

Appraisal and inspections

• Appraisal required by your lender.
• Home inspections you choose, such as general, radon, or pest.

Escrows and prepaids

• Prepaid interest from funding to your first payment.
• Homeowner’s insurance, often one year paid up front or escrowed.
• Initial escrow deposit for taxes and insurance based on due dates and lender limits.

HOA and metro district items

• HOA resale or transfer fees and any required resale packet.
• Metro or special district notes that explain ongoing mill levies on your future tax bill. These are not one-time bond payoffs at closing, but they do affect your annual cost of ownership.

Who pays what in Colorado

Customs vary by county and by contract, but here is what you will often see:

• Seller commonly pays: real estate commission, owner’s title policy, prorated property taxes to the closing date, and sometimes the HOA resale packet.
• Buyer commonly pays: lender fees, appraisal, credit report, inspections, lender’s title policy, mortgage recording, prepaid interest, and escrow deposits.
• Both sides can negotiate credits, rate buydowns, and who covers specific fees in the purchase contract.

Monument and El Paso County factors

Metro and special districts

Many Monument neighborhoods sit inside metro or special districts that fund infrastructure with bonds. The district’s debt service appears as a separate mill levy on the property tax bill. Review the Preliminary Title Commitment and the county tax bill, then contact the district to understand current levies and any planned assessments.

HOAs and resale packets

Neighborhoods like Woodmoor and others around Monument often have HOAs with monthly or annual dues. Associations can charge a resale or transfer packet fee and may have capital assessments. Ask for the HOA governing documents and most recent statement early.

Property tax proration

El Paso County property taxes are prorated at closing, so you and the seller split the year based on the closing date. Your lender may collect an initial escrow deposit to cover future tax and insurance payments.

Local title practices

In many Colorado deals, sellers often cover the owner’s title policy, while buyers cover the lender’s policy. Confirm the local norm with your agent and title company, then set your offer terms accordingly.

How much to budget

A useful starting point is about 2 to 5 percent of the purchase price for buyer closing costs, not including your down payment. Many Colorado buyers land closer to 2 to 3 percent with standard conventional loans. Unique items like HOA transfer fees, larger lender fees, or higher escrows can push your total higher.

Example A: $400,000 home

• Estimated buyer costs: roughly $8,000 to $12,000.
• Typical mix: lender fees $1,500 to $3,000; appraisal $450 to $700; inspections $300 to $800; prepaids and escrows $2,000 to $4,000; title and recording $800 to $2,000; HOA resale packet $200 to $400 if applicable.

Example B: $650,000 home

• Estimated buyer costs: roughly $13,000 to $32,500.
• Expect higher title premiums, potential lender fees, and larger tax and insurance escrows. HOA transfer fees or district-related items can add to the total.

Your step-by-step plan

Follow this simple playbook to get clear early and avoid surprises:

1. Apply with your lender and review the Loan Estimate within three business days. Compare fees and rates across lenders.
2. Ask the title company for a preliminary title commitment to spot easements, district liens, and who pays which title policy.
3. Request the HOA resale certificate and governing documents right away. Confirm dues, transfer fees, and any pending assessments.
4. Look up the parcel with the El Paso County Assessor or Treasurer to see mill levies and whether a metro or special district applies.
5. Ask your lender and title company for an itemized cash-to-close estimate well before your inspection deadline.
6. Review the Closing Disclosure at least three business days before closing. Confirm your wire amount and any prorations.

Common surprises to avoid

• Metro district levies: These are ongoing line items on your property tax bill, not one-time closing payments. Make sure they are in your monthly budget.
• HOA transfer and resale fees: Decide in the offer who will cover them and confirm the amount early.
• Escrow deposits: Your lender may collect several months of taxes and insurance to seed your escrow account.

When you get your final number

Your Closing Disclosure shows the final cash to close and arrives at least three business days before settlement. The title company will also confirm funds needed and provide wiring instructions. Compare both to your earlier Loan Estimate so you understand any changes.

Work with a local guide

Monument’s mix of HOAs, metro districts, and county timelines rewards clear planning. If you want a disciplined, step-by-step path from offer to closing, we are here to help you budget, negotiate who pays what, and coordinate with your lender and title team. Schedule a free consultation with DogHouse to map your purchase and cash-to-close with confidence.

FAQs

What are typical buyer closing costs in Monument?

• Plan for about 2 to 5 percent of the purchase price, with many buyers landing near 2 to 3 percent for standard loans.

Who usually pays title insurance in Colorado?

• Buyers typically pay the lender’s policy, and sellers often pay the owner’s policy, but both are negotiable in the purchase contract.

Do I pay metro district bonds at closing in Monument?

• You usually do not pay bond principal at closing; the district’s debt service appears as ongoing mill levies on your property tax bill.

When will I know my exact cash to close?

• Your lender must deliver the Closing Disclosure at least three business days before closing, and the title company will confirm final funds due.

How do HOA fees affect closing costs?

• You may see a one-time resale or transfer fee and a proration of dues based on your closing date, which should be listed in the HOA resale certificate.

What documents should I request early as a buyer?

• Ask for the Loan Estimate, preliminary title commitment, HOA resale packet, county tax and levy details, and then review the Closing Disclosure before signing.