DENVER HOME BUYER’S GUIDE · STEP 2 OF 10
How much cash you need to buy a home in Denver
What you can afford, how to protect your credit before closing, and every dollar you’ll need beyond the down payment. Use the estimator to run your own numbers.
Estimate my cash to close
The buyers who have the smoothest experience are almost always the ones who settled their numbers before they fell in love with a house.
Your lender is the expert on your loan, and I’ll connect you with a local lender who fits your situation. This page covers the basics so you walk into that conversation knowing what to ask.
How much house can you afford?
A common lender guideline is a purchase price no more than three to five times your household income. That’s a ceiling, not a target. What matters more is the monthly payment you’re comfortable with once property taxes, insurance, any HOA dues and mortgage insurance are added in. Some buyers want the lowest payment possible. Others care most that the payment never goes up. Your lender can show you both.
In newer Denver-area communities, check for a metro district. Metro district taxes can make the property tax bill on a new home close to double what a similar older home pays, and that changes what you can afford. My new construction directory flags which communities have one.
Protect your credit until you close
Your lender will check your credit when you’re pre-approved and again right before closing. Anything that changes in between can change your loan. Until you have keys:
- Pay down credit card balances where you can, and keep making every payment on time.
- Don’t open a new credit card or take out a car loan.
- Hold off on big purchases, including the furniture for the new house.
- If you can, avoid changing jobs. If a change is coming, tell your lender right away.
For more, read my four credit score tips for Denver buyers.
Highland, Cheesman Park and West Highland. Photos by Marla Doughty.
The cash you’ll need
The down payment gets all the attention. These are the other checks you’ll write.
Down payment
Typically 3% to 20% of the purchase price, depending on your loan. VA and USDA loans can require nothing down. Putting less than 20% down on a conventional loan usually means paying mortgage insurance.
Earnest money
A deposit, held by the title company, that makes your contract binding. Denver-area sellers typically ask for about 1% of the list price, and often more at luxury price points. It’s credited toward your cash to close, meaning your down payment and closing costs, or comes back to you if you terminate within the contract’s terms.
Closing costs
Usually 2% to 5% of the price: lender fees, title insurance, prepaid taxes and insurance, and recording fees. Sellers sometimes agree to cover part of them.
Inspections
Paid when the inspection happens, not at closing. Add a sewer scope and radon test on many Denver homes. See my home inspection guide for current costs.
Any buyer’s agent fee the seller doesn’t cover
If a seller offers less than the fee in our agreement, the difference is due at closing. I show you this number for every home before you make an offer. How it works.
A cushion after closing
Moving costs, a few months of reserves and money for the first repair. Your lender will tell you what reserves your loan requires. I’d plan on keeping more than that.
Cash to close estimator
A rough estimate to plan with. Your lender’s Loan Estimate will have the real figures.
| Down payment | |
| Closing costs | |
| Inspections | |
| Agent fee not covered by seller | |
| Seller credit | |
| Estimated cash needed | |
| Earnest money due when your offer is accepted (about 1% of list price, credited toward the total above) | |
| Estimated loan amount |
Estimate only. Earnest money is based on the price entered here and may be higher at luxury price points. Doesn’t include mortgage insurance, upfront loan program fees that can be financed, HOA transfer fees or your post-closing cushion. Sellers can’t credit more than your lender allows.
Frequently asked questions
How much is earnest money in Denver?
Denver-area sellers typically ask for about 1% of the list price, and often more at luxury price points. In competitive situations, a larger deposit can make your offer stronger. It's credited toward your cash to close, meaning your down payment and closing costs.
Do I get my earnest money back if the deal falls through?
It depends on why. If you terminate before a contract deadline for a reason the Colorado contract allows, such as an unsatisfactory inspection or a low appraisal, it's typically refunded. If you miss a deadline or back out for a reason the contract doesn't cover, you can lose it. Tracking those deadlines is one of the most important parts of my job.
Can the seller pay my closing costs?
Yes, a seller can agree to a credit toward your closing costs, up to the limit your loan program allows. Whether a seller will agree depends on the home and the market at the time. I'll tell you when asking for one makes sense and when it would weaken your offer.
Get my local lender recommendations
Your lender is the right person to run your numbers and tell you which loan fits. I work with a few local lenders I trust to communicate well and close on time, and each one has different strengths. Tell me a little about your situation and I'll send you the names that fit.
General information, not lending or financial advice. Your lender will provide your actual costs on the Loan Estimate and Closing Disclosure. Last reviewed September 2026.