Common Closing Costs for Buyers in Maine and New Hampshire
All New Hampshire and Maine lenders must provide
potential Seacoast home buyers an estimate of settlement
costs on a form that is entitled a "Good Faith Estimate".
The Good Faith Estimate or GFE outlines all of the charges a
mortgage lender will charge you, as a home purchaser, as
well as an estimate for attorney and title company
fees. Estimates on the GFE include:
- Downpayment
- Loan origination fees
- Points, or loan discount fees, you pay to lower
your interest rate - Appraisal fee
- Credit report
- Private mortgage insurance premium or PMI
- 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
- Transfer Stamps:
In New Hampshire it's .0075 x 1/2 the Purchase Price.
In Maine the rate of tax is $2.20 for each $500
or fractional part of $500 of the value of the property
being transferred. The tax is imposed ½ on the grantor,
½ on the grantee. . - Prorations for your share of costs, such as utility bills and property taxes
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 five 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.
Prior to closing, the NH Attorney or Title Company will provide you and your Realtor a settlement statement known as your HUD. At this time you'll want to compare the fees listed on the settlement statement with the fees outlined on the Good Faith Estimate and discuss any differences with either your Realtor and/or your Mortgage Broker.
A check to cover your closing costs will probably have to be a cashier’s check unless you are making arrangements to wire your funds into the closing attorney's bank account.
**Based on an article written by REALTOR Magazine Online and used with permission from the NATIONAL ASSOCIATION OF REALTORS
