Last Updated on Saturday, 07 March 2009 19:04 Written by Carl Johnson

A buyer of a property is responsible for certain closing costs on the day of the closing. These are generally outlined in the HUD statement that is provided prior to the closing. This article reviews these closing costs for the New Hampshire home buyer.

General Expenses for the Buyer Purchasing

Real Estate in New Hampshire

The State of New Hampshire Transfer Tax is $15.00 per $1,000 of the sale price of the property being purchased. This tax is shared equally between the buyer and the seller, each paying $7.50 per $1,000 of the sale price. This is collected at the time of the closing. It is collected by the closing attorney who takes care of the payment to the state.

Bank fees or closing costs vary between institutions and will range from 3%-5% of the mortgage amount. Costs may include the appraisal of the property, credit report, and title insurance fee. It is a good idea to discuss title insurance with the closing agent prior to closing. The bank will originate a policy to cover the mortgage amount, but a buyer may purchase a "homeowners policy" on the day of the closing for a reduced fee. Additionally, points (1% of the mortgage amount) may also be required to be paid depending on the loan program. Points lower the interest rate paid by the borrower.

Escrows are collected at the closing and may include pre-paid mortgage insurance, one year of hazard or fire insurance, and property taxes. In many cases, the property insurance is paid for by the buyer prior to the closing in which case an insurance binder must be provided by the buyer.

The tax year in New Hampshire begins on April 1 and ends on March 31. Taxes are pro-rated at the closing and the seller will pay for the days he will occupy the property in the current tax period. Some New Hampshire towns pay taxes once yearly, but it is more common to pay twice yearly. This occurs in July and December. In this case the payment covers the taxes 3 months prior to the pay date and 3 months forward. (So the December tax bill will cover Oct, Nov Dec, Jan, Feb March.)

Electricity and water meters are usually read and the seller makes the final payment. The account then goes into the buyer's name. Other fuels, such as propane, oil or kerosene are measured and the buyer generally reimburses the seller for the fuel with a personal check just prior to the closing. (check your contract to see if the fuel is being prorated; ask your agent) In some cases this may be included in the settlement statement so check the HUD form carefully prior to the closing.

The balance of the down payment and closing costs are paid with a bank or certified check, not a personal check. The total final amount required for the closing and a copy of the preliminary settlement statement are available for review prior to closing.

 

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