Common Closing Costs for Buyers

There are several costs associated with buying a home in Vermont besides the Purchase Price.  An informed buyers needs to be aware of all of the items below when negotiating on a home or condo.

• Down Payment - Buyers should expect to pay an initial good faith deposit when first submitting an offer - followed up with a more substantial deposit once the Buyers and Sellers have come to agreement on a purchase price.

• Attorney Fees

• Home Inspection Fees - such as building inspection, water and radon tests.

• Vermont Buyers are responsible for paying Property Transfer Tax at closing. 

• Homeowners Insurance

• Pro-Rations for your share of costs, such as utility bills, association fees and property taxes:  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 pro-rated for the number of days in the month, and then each person would be responsible for the days of his or her ownership. 

• Mortgage & Recording fees:  The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. Your attorney will summarize your closing costs for you (some of the following items are specific to mortgaged properties only):

  • 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

  • Notary fees