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Closing Costs for Home Buyers Manchester NH

When the time comes to closeon your home in Manchester, you will be given a stack of paperwork which shows the line by line of every fee you encounter during your real estate purchase. Remember, these costs are in addition to your minus escrow money and down payment. And be forewarned, these costs will ad up to 3 to 5% of your total purchase.

Real Estate Specialists
(603) 669-9085
1031 Gold St
Manchester, NH

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Re/Max Area Real Estate Networ
(603) 626-5000
685 Massabesic St
Manchester, NH

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Erwin Real Estate
(603) 606-6579
150 Dow St Ste 12
Manchester, NH

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Era Masiello Group
(603) 314-1111
1230 Elm St
Manchester, NH

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Thelma Katz & Assoc Inc Rl Est
(603) 669-1022
46 W Webster St
Manchester, NH

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Lee Fitzgerald Real Estate Svc
(603) 665-9999
656 S Beech St Ste 2
Manchester, NH

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LeaderGate Realty llc.
(603) 475-3668
10 w.appleton st
manchester, NH
 
Kas-Bar Realty
(603) 624-1766
65 W Merrimack St
Manchester, NH

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John J Flatley Co
(603) 641-8500
977 Elm St
Manchester, NH

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Silver Family Real Estate
(603) 624-7775
155 Myrtle St
Manchester, NH

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Closing Costs for Home Buyers

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When the time comes to close, you will be given a stack of paperwork which shows the line by line of every fee you encounter during your real estate purchase. Remember, these costs are in addition to your minus escrow money and down payment. And be forewarned, these costs will ad up to 3 to 5% of your total purchase.

When you go to complete your closing costs, or settlement costs, you need to bring a personal check or certified check. Beware that there may be additional fees than were originally discussed by your lender, such as attorney fees or title fees.

Below are the typical fees buyers must pay. Note, however, that not every buyer will pay every fee listed because they can sometimes convince the seller to take on some of the fees through negotiations. Also, different geographic areas charge different fees and not every lender will charge every fee shown.

Commissions

  • The cost: typically 6 percent which is spit between both the buyer and seller’s agents
  • Description: Payment for work the agent has accomplished. All of the real estate and broker fees are paid at the closing.
  • Who pays? Usually the seller will pay unless it is a local tradition that the buyer pays or there was a deal to split the fees negotiated and written into the sales contract.
  • Remember these costs are not included in your lender’s “good faith estimate.”

    General Loan Fees
    Loan Origination Fee: How much? Usually one percent of the total loan cost. This fee is referred to as a point or points, in which one point equals one percent.
    Description: Lenders cover their administration expenses by charging up front.
    Who Pays? The buyer, though there are some areas where there the seller will pay and there are some loans that do not have an origination fee.

    Loan Discount
    How much? Discount on interest.
    Description: This refers to a one time fee charged by the lender or mortgage broker to lower the interest rate, and ultimately the mortgage payment. This means that paying points up front is very important because the more points you pay up front, the lower your interest rate will be. This also called a point or discount point, but it is important to remember that one point does not drop the interest rate on percentage point.
    Who pays? The buyer pays unless a different arrangement has been made.

    Application Fee
    How much? The average cost is about $300, though there are some experts who charge up to $500.
    Description: Most lenders charge an application fee or lender’s processing fee.
    Who pays? The buyer pays.

    Appraisal Fee
    How much? Typically about $300. Though this fee can increase or decrease depending on the size of your property and the fees in your area.
    Description: A bank usually higher an appraiser to check and see if the property is worth the price you have offered for it.
    Who pays? The buyer must pay.

    Credit Report Fee:
    How much? Usually referred to as a “credit check fee,” this fee averages about $25 for every credit report checked, although some buyers will pay about three times this.
    Description: the lender looks at your credit report and credit scores, which is a critical point in finding out how worthwhile it is to loan you money and how much.
    Who pays? Buyer

    Lender’s Inspection Fee
    How much? Under one hundred dollars.
    Description: If you are buying a home under construction or buying a new one, the lender may require it to be inspected for a fee.
    Who pays? Buyer

    Mortgage Insurance Application Fee
    How much? Varies
    Description: When the down payment costs less 20% of the purchase price, it is require that you carry Private Mortgage Insurance to protect the lender if you default on your loan.
    Who pays? Buyer pays until equity reaches 20%. Remember that some lenders will have a cost for processing paperwork.

    Assumption Fee
    How much? Varies
    Description: In some cases the buyer can take over the lender’s existing mortgage. In such case the lender will typically charge a fee.
    Who pays? Buyer

    Lender’s Attorney Fee
    How much? Around $400.
    Description: Expect to be charged if the lender chooses to involve an attorney.
    Who pays? Buyer, though some buyers have balked successfully and lenders have withdrawn this fee.

    Advance Loan Fees
    How much? Varies
    Description: The buyer may have to make these payments at closing.

    Interest
    How much? This will range from one to thirty days of interest.
    Description: Most lenders will ask that the buyer pay the interest that will accrue within the first thirty days before the mortgage payment is due.
    Who pays? Buyer

    Hazard Insurance Premium
    How much? A full year of hazard insurance premium payment.
    Description: The policy protects the lenders against natural disasters destroying your home.
    Who pays? Buyer

    Flood Insurance Premium
    How much? Varies
    Description: Lenders may require flood insurance depending on the location of your home.
    Who pays? Buyer

    Earthquake Insurance
    How much? Varies
    Description: Depending on the region you live in, your lender may ask for earthquake insurance.
    Who pays? Buyer

    Reserve Account Funds
    Description: Your monthly mortgage payments will likely include a fee for homeowner’s insurance and hazard insurance, as well as property tax.

    Homeowner’s Insurance
    How much? Two months worth of payments.
    Who pays? Buyer

    Mortgage Insurance
    How much? Two months of mortgage insurance.
    Who pays? Buyer pays.

    City Property Taxes and County Property Taxes
    How much? Two months of property tax.
    Who pays? Buyer

    Annual Assessments
    How much? Two months’ payments
    Description: Annual assessments of your property tax and homeowner’s insurance may be included in your monthly mortgage payment.
    Who pays? Buyer

    Title Charges

    Title Search
    How much? $200
    Description: This is done to make sure there are not any mortgage payments or unpaid liens on the property.
    Who pays? Negotiable

    Title Insurance Fees
    How much? Depending on where you live this cost can be as high as one percent of your total cost.
    Description: This is an insurance policy for the owner to make sure that the title to the property is clear.
    Who pays? Buyer, and keep in mind a separate fee may be included to protect the lender.

    Documentation Preparation Fee
    How much? $200 is the average fee.
    Description: Lenders sometimes advocate this fee under the idea that it covers the cost of preparing final legal papers.
    Who pays? Buyer. This is negotiable.

    Notary Fees
    How much? Varies
    Description: This covers a sworn in notary who acts as a witness to show that the people who are stated as signing the documents actually signed them.
    Who pays? Buyer

    Attorney Fees
    How much? Depends on the situation.
    Description: In some areas the attorney handles the final costs.
    Who pays? Buyer

    Government Recording and Transfer Charges
    These vary depending on state and county policies. It is also negotiable who pays them.

    Recording Fees
    How much? About $100.
    Description: Covers the cost of getting the sale recorded in the public record.
    Who pays? The buyer

    Transfer Taxes
    How much? Varies
    Description: These might be hefty amounts in certain places. In some areas the government might require you to purchase tax stamps.
    Who pays? Buyer

    Miscellaneous Settlement Charges
    Who pays these is negotiable and depends on the contract.

    Survey
    How much? About $1000.
    Description: In some cases a lender will ask for a survey of the property.
    Who pays? Buyer

    Pest Inspection
    How much? Varies
    Description: Depending on your region, you may have to do a termite and pest inspection.
    Who pays? Usually the seller will pay for this.

    Lead-Based Paint Inspection
    How much? Varies
    Description: Covers cost of determining any lead-based paint risks.
    Who pays? Usually the buyer

    Courier Fee
    How much? Varies
    Description: If a courier picks up or delivers documents, then there will be a charge.
    Who pays? Buyer

    There are many fees associated with the closing of a home, but take each fee one be one so that you do not get overwhelmed.

    Visit Homesalesnetwork.com for more information

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