closing costs colorado

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Leveling the Playing Field (Closing Costs)


With the number of mortgage brokers in Colorado, everyone is trying to distinguish themselves. Some brokers claim to have better rates, some better costs, while others have better relationships with their bank, lender, title company, etc. and your Good Faith Estimate reflects very little in the way of excessive fees or points. Of course come closing day, you realize this is not the case. Below is a list of standard items that will be present no matter who completes your mortgage loan. If you receive anything "free" it is probably built into the cost of the loan.

Appraisal: necessary for underwriters to complete a review of the mortgage property.
Title: includes items such as property search, various riders for assessments and environmental concerns
Insurance: includes one year's worth of premiums plus two months of reserves. Not to be confused with private mortgage insurance (PMI).
Recording: the cost to record your new mortgage information with the county.
Underwriting, Flood and Tax Certificate: charged by the bank/lender during the approval process. Underwriters need to research these items to help assess various risk.

The next items are where Syndicate can make a difference in your mortgage and associated costs. Some brokers choose to omit/alter these fees when presenting closing costs estimates to their clients.

Origination Fee: typically one percent (1%) of the loan amount. Syndicate uses a flat fee structure
Points: often referred to as yield spread premium. Money paid to the lender by the borrower for a lower rate (buying down the rate) or an invisible payment to the broker for booking the borrower into a higher interest rate.
Administrative: mostly seen with larger lenders to pay for various overhead expenses. Often omitted by mortgage brokers from estimates. Typically helps the owner's profit. Syndicate never has an administration fee. We simply do not add junk fees.