What Are My Closing Costs Going To Be? Buyer Tips from Your Exeter NH Realtor, Laurel Trzaskoma

What Are My Closing Costs Going To Be? Buyer Tips from Your Exeter NH Realtor, Laurel Trzaskoma

Common Closing Costs for Buyers in NH - Home Buying Tips from Your Exeter Area Realtor

Once you have decided on a lender and made a loan application, they must provide you with a good faith estimate of closing costs.

Then the day or so before the actual closing the title company will tell you the exact required amounts for closing, usually they'll send you or your agent a HUD statement. And remember...the check required for closing will need to be a bank check, not a personal check.

This is a list of common items that are considered to be 'closing costs':

• Downpayment.
• Loan origination fees.
• Points, or loan discount fees you pay to receive a lower interest rate.
• Appraisal fee.
• Credit report.
• Private mortgage insurance premium.
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees.
• Title insurance policy premiums.
• Survey.
• Inspection fees -- building inspection, termites, etc.
• Notary fees.
• Prorations for your share of costs such as utility bills and property taxes.
• In NH you will also pay transfer taxes, which are 15.00 per 1,000 of the purchase price. Half of this amount is paid by the buyer and the other half by the seller.

A Note About Prorations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.


What to Keep From Your Closing

• The Real Estate Settlement Procedures Act (RESPA) statement. This form, usually called a HUD statement, itemizes all the costs associated with the closing. You'll need this for income tax purposes and when you sell the home.
• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed transfers ownership of the property to you.
• Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
• Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.
• Insurance policies provide a record and proof of your coverage.

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