One full closing worked start to finish

Bottom line: every closing is the same 8 steps. We will walk one real example with exact numbers so you can reuse the method. This is a teaching example; your contract and closing company control real deals. Days are counted by actual calendar days in this lesson, and a year has 365 days for taxes and 360 days for the lender's interest.

1. The contract terms

• Price: $480,000, a single-family home in an HOA, Boulder County.
• Earnest money: $9,600 (2%), held by the title company. The broker who receives it must deliver it to the holder with a dated, signed receipt (Rule 5.12).
• Buyer's loan: 80%, so $384,000; the down payment is 480,000 - 384,000 = $96,000.
• Closing and possession: Friday, August 14, 2026. The buyer owns from that day.
• The seller pays the owner's policy and gives the buyer a $4,000 credit. The buyer pays the lender's policy. The documentary fee and the closing fee are split.
• Commission: 2.5% listing + 2.5% buyer side = 5% total = $24,000.

2. The loan and the Closing Disclosure

The lender sent a Loan Estimate within 3 business days of application, and the buyer received the Closing Disclosure at least 3 business days before August 14 (12 C.F.R. 1026.19(f)). Rate: 6%.

3. Prorations

Property taxes (2026, paid in 2027). The last bill was $3,650, which is $10 a day. The seller owns January 1 to August 13: January to July = 31 + 28 + 31 + 30 + 31 + 30 + 31 = 212 days; plus August 1 to 13 = 13 days; total 225 days. Seller's share: 225 x $10 = $2,250 as a credit to the buyer.

HOA dues. Dues are $248 a month, paid on the 1st in advance. The seller paid August. The buyer owns August 14 to 31 = 18 days. Daily rate: 248 / 31 = $8. 18 x $8 = $144 that the buyer repays the seller.

Documentary fee. 480,000 / 100 = 4,800 hundreds x $0.01 = $48.00, split $24 each (C.R.S. 39-13-102).

4. The seller's statement

Charge	Amount
Loan payoff (principal and interest per payoff statement)	$274,300.00
Commission 5%	$24,000.00
Owner's title policy	$1,720.00
Documentary fee, half	$24.00
Property tax proration	$2,250.00
HOA transfer and status letter fees	$375.00
Closing fee, half	$250.00
Credit to buyer	$4,000.00
Less: HOA dues repaid by the buyer	-$144.00

Add the charges: 274,300 + 24,000 = 298,300; + 1,720 = 300,020; + 24 = 300,044; + 2,250 = 302,294; + 375 = 302,669; + 250 = 302,919; + 4,000 = 306,919. Subtract the HOA refund: 306,919 - 144 = 306,775. Net proceeds: 480,000 - 306,775 = $173,225.

5. The buyer's statement

Closing costs: origination 1% x 384,000 = 3,840; appraisal 625; credit report and flood certificate 85; lender's title policy 1,150; closing fee half 250; documentary fee half 24; recording 130; HOA capital contribution of two months of dues = 2 x 248 = 496. Add: 3,840 + 625 = 4,465; + 85 = 4,550; + 1,150 = 5,700; + 250 = 5,950; + 24 = 5,974; + 130 = 6,104; + 496 = 6,600.

Prepaids: homeowner's insurance for a year 1,440; interest August 14 to 31 = 18 days. Daily interest: 384,000 x 6% = 23,040; / 360 = $64; 18 x 64 = 1,152. Escrow deposits: 3 months of tax (3,650 / 12 x 3 = 912.50) and 3 months of insurance (1,440 / 12 x 3 = 360). Add: 1,440 + 1,152 = 2,592; + 912.50 = 3,504.50; + 360 = 3,864.50.

Debits: 480,000 + 6,600 + 3,864.50 + 144 (HOA dues) = 490,608.50.

Credits: loan 384,000 + earnest money 9,600 + seller credit 4,000 + tax credit 2,250 = 399,850.

Cash to close: 490,608.50 - 399,850 = $90,758.50. Including the earnest money already paid, the buyer's total cash is 90,758.50 + 9,600 = $100,358.50.

6. Proof that the money balances

Money in: buyer's wire 90,758.50 + loan 384,000 + earnest money 9,600 = 484,358.50.

Money out: seller's net 173,225; payoff 274,300; commission 24,000; owner's policy 1,720; lender's policy 1,150; documentary fee 48; closing fees 500; HOA (375 + 496 = 871); origination 3,840; appraisal 625; credit and flood 85; recording 130; insurance 1,440; prepaid interest 1,152; escrow deposits 1,272.50 (912.50 + 360).

Add: 173,225 + 274,300 = 447,525; + 24,000 = 471,525; + 1,720 = 473,245; + 1,150 = 474,395; + 48 = 474,443; + 500 = 474,943; + 871 = 475,814; + 3,840 = 479,654; + 625 = 480,279; + 85 = 480,364; + 130 = 480,494; + 1,440 = 481,934; + 1,152 = 483,086; + 1,272.50 = 484,358.50. In equals out. A closing agent calls this "the file balances." The 144 HOA, 2,250 tax, and 4,000 credit are payments between buyer and seller and are already inside the two nets.

Example with real numbers: what if the closing slips?

If closing moves to August 28, the seller owns 14 more days of taxes: 14 x $10 = $140 more in the proration (225 + 14 = 239 days x 10 = 2,390), and the buyer owns 4 fewer days of HOA dues (August 28 to 31 = 4 days x $8 = $32, not $144). A good broker can redo the math quickly.

7. Final checks the broker makes

• Do both statements show the same figures for shared lines (tax proration, HOA proration, seller credit, doc fee)?
• Do the funds in the closing account equal the money out?
• Have the funds been received and are they available for immediate withdrawal before anything is paid out? (Rule 6.19.E).
• Was the wire sent to the verified account (call a known number)?
• Is there a payoff for each old loan, and will a release be recorded?
• Will the deed (with grantee address) and the deed of trust be recorded? (C.R.S. 38-35-109).
• Did the broker review the documents and sign the closing statement for the client, and deliver the statements to the brokerage firm right after closing? (Rule 6.19.A, C).

8. After closing

Keep the transaction file for four years from the consummation date (Rule 6.20). Send thank-you notes only after closing, and do not discuss the client's numbers with anyone else.