A recent article by The Denver Post reports:
“Mortgage closing costs in Colorado ranked the 12th highest in the U.S. in June, at an average of $1,910, according to a survey by Bankrate.com.”
Michael Shotnik, Branch Manager of Colorado Mortgage, sheds light on why this is:
“The increased costs are a result of market activity. As demand increases it puts stress on all parties to a transaction, which causes costs to rise.
The appraisal in particular is a good example. In the past appraisals cost a standard $425.
Now, the cost for an appraisal will vary depending on location, due date and loan type.
In addition, a portion of costs are percentage based and as home pricings increase costs increase as a result.
At Colorado mortgage (a dba of Sierra Pacific Mortgage) we do not charge a processing fee.
Most lenders will charge a $250-$550 processing fee, however we made the decision to waive this fee with the past year to streamline the process/costs for our clients.”
Closings costs are the most overlooked portion of the home loan. It’s important to shop different lenders and not focus solely on rates.
What are closing costs? Michael Shotnik briefly explains: