Colorado process · buyer view

The Colorado Home-Buying Process: Your Step-by-Step Checklist

This checklist walks you through buying a home in Colorado, from getting pre-approved to handing over the keys.

Phase 1 of 7 · typically 2-8 weeks

Pre-Offer

Get your money in order, line up an agent under a written agreement, and start touring homes that actually fit your budget.

Get pre-approved for a mortgage
LenderBefore you start touring homes
Talk to 2-3 lenders and compare interest rates, fees, and loan programs. They will ask for tax returns, pay stubs, and bank statements so they can issue a pre-approval letter that shows sellers you can actually buy.
You'll need
- W-2s (last 2 years)
- Pay stubs (last 30 days)
- Bank statements (last 2 months)
- Photo ID
Cost: $0
Set your budget and savings target
YouBefore you start touring homes
Decide what monthly payment you can handle and how much cash you have for down payment and closing costs. Colorado closing costs for buyers are usually 2-4% of the purchase price, on top of the down payment.
Cost: $0
Interview and choose a buyer's agent
YouBefore you tour any homes
Talk to a few Colorado licensed brokers and pick one you trust. Ask how they get paid, what areas they know, and how they handle competing offers — commission rates are not set by any group and are fully negotiable.
Cost: $0
Pick your brokerage relationship
Your agentAt your first real meeting with the broker
In Colorado, every licensee is a transaction broker by default unless you sign a written single-agency agreement. A transaction broker helps both sides close the deal, while a single agent owes you full loyalty and confidentiality — your broker must give you a Brokerage Relationships Disclosure before any real conversation about your search.
You'll need
- Brokerage Relationships Disclosure form
Cost: $0
Sign a written buyer brokerage agreement
Your agentBefore your first home tour
Since August 17, 2024, NAR settlement rules require a written buyer brokerage agreement before a broker who is a member of an MLS can tour any home with you — in person or virtual. The agreement must spell out the exact dollar amount or percentage your broker will be paid, and it cannot be open-ended.
You'll need
- Exclusive Right-to-Buy Listing Contract (Commission-approved form)
Cost: $0
Tour homes and pick a target
Your agentAfter you sign the buyer brokerage agreement
Go see properties that fit your price and must-haves. Take notes on each one and watch for issues like steep slopes, well-water properties, or older homes that might need extra inspections later.
Cost: $0

Phase 2 of 7 · typically 1-7 days

Offer

Write a competitive offer on the state-promulgated contract and negotiate price, dates, and terms until both sides sign.

Learn the Colorado purchase contract
Your agentBefore you submit an offer
Colorado licensees must use the Commission-promulgated Contract to Buy and Sell Real Estate (often called the CBS). The form is built around a long list of deadlines — like the Inspection Objection Deadline and Loan Objection Deadline — and missing a deadline can cost you the deal or your earnest money.
You'll need
- Contract to Buy and Sell Real Estate (CBS)
Cost: $0
Decide your offer price and earnest money
Your agentBefore submitting the offer
Work with your broker on a number that reflects recent comparable sales and how competitive the home is. Earnest money in Colorado is commonly 1-2% of the purchase price and shows the seller you are serious.
Cost: varies
Decide how your broker gets paid in the offer
Your agentWhile drafting your offer
Colorado MLS systems can no longer publish buyer broker compensation, so your offer needs to spell it out. Common paths are: ask the seller to pay your broker directly, ask for a seller concession that funds the payment, or pay your broker yourself.
Cost: varies
Submit your written offer
Your agentWhen you decide to make an offer
Your broker sends the signed offer package to the listing side. The package usually includes the Contract to Buy and Sell, your pre-approval letter, and a description of your earnest money.
You'll need
- Signed Contract to Buy and Sell
- Pre-approval letter
Cost: $0
Negotiate and reach mutual acceptance
Your agentUntil both sides sign
The seller may counter on price, dates, or terms. You can accept, counter back, or walk away — once both sides sign the same version, you are under contract and the deadline clock starts.
You'll need
- Counteroffer or amendment (if used)
Cost: $0

Phase 3 of 7 · typically 1-2 weeks

Under Contract

Deliver earnest money, open escrow, and read every disclosure the seller and title company hand you.

Deliver earnest money on time
YouBy the Earnest Money deadline in the contract
Get your earnest money to the holder named in the contract by the deadline — in Colorado this is usually the title company, not the brokerage. Brokers who do hold earnest money must keep it in a designated trust account under strict state rules.
You'll need
- Wire instructions from title company
Cost: varies
Read the Seller's Property Disclosure
Seller's sideBy the Seller's Property Disclosure Deadline
Colorado sellers fill out the Commission-approved Seller's Property Disclosure (SPD) covering known defects in the roof, plumbing, electrical, HVAC, environmental hazards, and HOA matters. Read every checked box and follow up on anything that surprises you.
You'll need
- Seller's Property Disclosure (SPD)
Cost: $0
Review the title commitment
Escrow / titleBy the Title Resolution Deadline
The title company issues a title commitment listing every lien, easement, and restriction on the property. In Colorado the commitment must also flag if the mineral estate has been separated from the surface — meaning someone else may have the right to enter to develop oil, gas, or minerals.
You'll need
- Title commitment
- Exception documents
Cost: $0
Review the HOA documents (if any)
Seller's sideBy the Association Documents Deadline
If the home is in a condo, townhome, or planned community, the seller must give you the HOA package under the Colorado Common Interest Ownership Act. The package includes the declaration, bylaws, rules, current budget, year-end financials, and any pending special assessments.
You'll need
- HOA declaration
- Bylaws and rules
- Current operating budget
- Year-end financial statement
Cost: varies
Review the source-of-water disclosure
Seller's sideAt or before contract execution
Colorado law requires the seller to disclose where the home's water comes from — city water, a well, a water district, a cistern, or a shared system. If the property is on a well, ask for the well permit because the permit type controls what the water can legally be used for.
You'll need
- Source of water disclosure
- Well permit (if applicable)
Cost: $0

Phase 4 of 7 · typically 10-14 days

Inspection

Check the condition of the home and use Colorado's two-step inspection objection and resolution process to negotiate fixes or back out.

Hire a licensed home inspector
YouWithin the first few days under contract
Choose a qualified home inspector and schedule the inspection as soon as you are under contract. A standard inspection covers structure, roof, plumbing, electrical, HVAC, and major appliances, and usually takes 2-4 hours.
Cost: $400-800 typical
Order a radon test
InspectorDuring the inspection window
Colorado has some of the highest radon levels in the country, and many homes test above the EPA action limit. A radon test costs about $150 and the results help you decide if you need mitigation, which usually runs $1,000-$2,500.
Cost: $100-200 typical
Order a meth contamination test if anything seems off
YouDuring the inspection window
Colorado law requires sellers to disclose if they know the home was used as a meth lab or contaminated. If the seller cannot confirm one way or the other and something feels off, a certified industrial hygienist can test for around $150-$500.
Cost: $150-500 typical
Consider a sewer scope and other specialty inspections
YouDuring the inspection window
A sewer scope sends a camera through the main sewer line to look for root damage and collapses — useful for older Front Range homes. Other add-ons include structural engineers for foundation cracks and roofers for hail damage.
Cost: $150-400 typical
Submit your Inspection Objection
Your agentBy the Inspection Objection Deadline
The Colorado contract gives you an Inspection Objection Deadline by which you must give written notice of what needs to be fixed or credited. If you do not submit anything in writing by that date, you are stuck with the home as-is.
You'll need
- Inspection Objection form
- Inspection report
Cost: $0
Resolve repairs or terminate by the deadline
Your agentBy the Inspection Resolution Deadline
After your objection, the seller can agree, refuse, or counter. You and the seller have until the Inspection Resolution Deadline to sign an agreement — if you cannot agree, you can terminate the contract and your earnest money is normally returned.
You'll need
- Inspection Resolution form (if any)
Cost: $0

Phase 5 of 7 · typically 3-4 weeks

Loan & Appraisal

Finish the loan paperwork, get the home appraised, and clear every condition the lender lists.

Lock your interest rate
LenderAfter you are firm on the closing date
Tell your lender when you want to lock the rate. Rate locks usually last 30-60 days, so coordinate the lock with the closing date in the contract to avoid paying extension fees.
Cost: $0
Submit final loan documents
LenderFirst week under contract
Your lender will ask for updated pay stubs, bank statements, the signed purchase contract, and proof of homeowner's insurance. Respond fast — every day of delay puts the closing date at risk.
You'll need
- Updated pay stubs
- Updated bank statements
- Signed contract
- Proof of insurance
Cost: $0
Order the appraisal
LenderAfter loan docs are submitted
Your lender hires an independent appraiser to confirm the home is worth what you are paying. You will usually pay the appraisal fee upfront, and the report takes about a week to come back.
Cost: $500-700 typical
Handle a low appraisal
Your agentBy the Appraisal Objection Deadline
If the appraisal comes in below the contract price, you can ask the seller to lower the price, pay the difference in cash, walk away under your Appraisal Objection right, or ask the lender to challenge the value. Use the deadlines in the Colorado contract to keep your options open.
You'll need
- Appraisal Objection form (if used)
Cost: varies
Get final loan approval (clear to close)
LenderAbout 3-7 days before closing
Your lender's underwriter signs off on everything and issues a clear-to-close. After this, do not open new credit cards, change jobs, or move large amounts of money — any of those can blow up the loan.
Cost: $0

Phase 6 of 7 · typically 3-7 days

Pre-Closing

Confirm everything is ready — insurance, money, walk-through, and final paperwork — so closing day is smooth.

Bind your homeowner's insurance
YouAt least 1 week before closing
Pick a homeowner's insurance policy and have the insurer send the binder to your lender and title company. In Colorado, wildfire, hail, and wind coverage details really matter — ask about deductibles and replacement-cost coverage.
You'll need
- Insurance binder
- First-year premium receipt
Cost: $1,500-3,000 typical first year
Review your Closing Disclosure
LenderAt least 3 business days before closing
Your lender must give you the Closing Disclosure at least 3 business days before closing. Compare every line to the Loan Estimate you got when you applied — the interest rate, loan amount, monthly payment, and cash-to-close should match.
You'll need
- Closing Disclosure
Cost: $0
Confirm the lead-based paint disclosure for older homes
Seller's sideBefore closing (for homes built before 1978)
Federal Title X rules require sellers of homes built before 1978 to disclose any known lead-based paint hazards and give you the EPA pamphlet. Make sure the signed disclosure is in your closing packet and that you used or waived your 10-day inspection period for lead.
You'll need
- Lead-based paint disclosure
- EPA pamphlet
Cost: $0
Do a final walk-through
Your agentWithin 48 hours of closing
Visit the home 24-48 hours before closing to make sure agreed-upon repairs were done, the seller took their stuff, and nothing new is broken. Take photos and bring your agent.
Cost: $0
Wire your closing funds
You1-2 days before closing
Your title company will send wire instructions for your down payment and closing costs. Confirm the instructions by phone using a number you already know — wire fraud where scammers email fake instructions is one of the biggest risks in real estate today.
You'll need
- Wire instructions from title company
Cost: varies

Phase 7 of 7 · typically 1 day

Closing

Sign the paperwork at the title company, pay your costs, and pick up the keys to your new Colorado home.

Bring ID and required documents
YouOn closing day
Bring a government-issued photo ID, your insurance binder if not already delivered, and any cashier's check the title company requested. Most funds should be wired ahead of time, not brought to the table.
You'll need
- Government-issued photo ID
- Insurance binder
- Any cashier's check requested
Cost: $0
Sign closing documents at the title company
Escrow / titleOn closing day
In Colorado, most residential closings happen at a title insurance company, not an attorney's office. The closer walks you through the deed, your loan documents, and the settlement statement — read each one and ask questions before you sign.
You'll need
- Promissory note
- Deed of trust
- Settlement statement
- Affidavits and certifications
Cost: $0
Pay the Colorado documentary fee
Escrow / titleAt closing
Colorado charges a documentary fee of $0.01 for every $100 of the purchase price — about $50 on a $500,000 home. The fee is collected at closing and the county records the deed at the same time. Colorado does not charge a separate state real estate transfer tax beyond this.
Cost: $0.01 per $100 of price
Handle FIRPTA withholding if the seller is foreign
Escrow / titleAt closing (only if seller is foreign)
If the seller is a foreign person under FIRPTA, federal law makes you (the buyer) responsible for withholding 15% of the gross price — 10% if the home will be your principal residence and the price is at or below $1,000,000. The title company normally handles the withholding paperwork on your behalf at closing.
You'll need
- IRS Form 8288
- IRS Form 8288-A
Cost: 10-15% of price (withheld from seller proceeds)
Get your keys and confirm recording
Escrow / titleSame day as signing
After everyone signs and your loan funds are received, the title company sends the deed to the county clerk and recorder. Once recorded, you officially own the home — collect your keys, garage door openers, and any HOA fobs.
You'll need
- Recorded deed (mailed later)
Cost: $0

Sources

Last updated May 15, 2026