Closing Costs

Pays for the licensed appraiser who determines the fair market value of the property.
This is often paid upfront during the mortgage process.

Covers the lender’s cost to pull your credit history.
Usually paid early in the loan process.

Covers the lender’s administrative and underwriting costs.
Often around 1% of the loan amount, but varies by lender.

Optional.
If you choose to lower your interest rate, you may purchase points.
Each point equals 1% of the loan amount.

In New Hampshire, title companies or closing attorneys handle the settlement process.
These fees may include:

• Title Search
• Title Examination
• Owner’s Title Insurance
• Lender’s Title Insurance Document Preparation
• Closing Coordination 

Title insurance protects you and your lender from future ownership claims or defects.

If your down payment is less than 20%, most lenders require Private Mortgage Insurance.

PMI protects the lender in case of default.
Once you reach 20% equity, you can typically request removal.

Interest is paid in arrears.

At closing, you pay interest from your closing date through the end of that month.

Example:

• Close on June 5 → you pay nearly a full month of prepaid interest.
• Close on June 28 → you pay only a few days. 

Timing your closing can affect this amount.

Most New Hampshire lenders require escrow accounts for:

• Property Taxes
• Homeowners Insurance 

At closing, you may need to fund:

• 12 Months of Insurance Several
• Months of Property Taxes Two
• Additional Cushion Months

Lakes Region homes, especially waterfront properties in Lake Winnipesaukee, Squam Lake, or Newfound Lake, may have higher tax assessments, so escrow funding can be significant.

Closing costs in New Hampshire are the lender, title, government, and prepaid expenses required to legally transfer property ownership. In the Lakes Region, including Laconia, Meredith, Gilford, and Moultonborough, buyers typically pay between 2 percent and 5 percent of the purchase price in closing costs. These are separate from your down payment. They often include the state transfer tax, title insurance, lender fees, escrow funding for property taxes and insurance, and recording charges. Understanding these costs early allows you to budget accurately and avoid surprises three days before closing when the final numbers are issued.

Most financed buyers in the Lakes Region should conservatively budget about 3 percent of the purchase price for closing costs. On a $600,000 home in Meredith, that may mean roughly $18,000. On an $900,000 property in Wolfeboro, that could approach $27,000 or more depending on escrow setup and loan structure. Waterfront properties on Lake Winnipesaukee often require higher escrow reserves because property taxes are higher. The New Hampshire transfer tax alone can be a significant line item. Exact numbers depend on loan type, closing date, and negotiated credits.

Buyer closing costs in New Hampshire typically include lender origination fees, appraisal fees, credit report fees, title search and title insurance, recording charges, prepaid interest, escrow funding for property taxes and homeowners insurance, and the buyer’s portion of the state transfer tax. If your down payment is below 20 percent, you may also see Private Mortgage Insurance premiums. Each of these costs appears on your Closing Disclosure. In towns such as Gilford or Moultonborough, tax prorations can also affect the final number. Reviewing each line item with your advisor helps ensure clarity before funds are wired.

For many buyers, the largest single closing cost is the New Hampshire real estate transfer tax. The rate is $15 per $1,000 of the purchase price and is customarily split equally between buyer and seller. On an $800,000 home, the buyer’s share is typically $6,000. Escrow funding for property taxes can also be significant, especially for higher-value homes in the Lakes Region. While lender fees vary, the transfer tax is predictable and statewide. Understanding this early prevents sticker shock when reviewing your final settlement statement.

Yes. Cash buyers avoid lender-related fees, but they still pay title insurance, title search fees, recording charges, prorated property taxes, and the buyer’s share of the transfer tax. In a cash purchase in Laconia or Meredith, closing costs are usually lower than with financing, but they are not eliminated. The transfer tax remains one of the largest expenses. Cash buyers also need to ensure proper due diligence and title protection since there is no lender overseeing that process. Closing costs remain an essential part of every transaction.

Waterfront homes on Lake Winnipesaukee, Squam Lake, or Newfound Lake often have higher purchase prices, which directly increases percentage-based costs such as transfer tax. In addition, property taxes tend to be higher, which increases escrow funding and prorations. Title review can also be more complex if docks, shoreland permits, or easements are involved. While the structure of closing costs remains the same statewide, the total amount naturally rises with property value and tax assessment. Buyers should plan accordingly when purchasing lakefront property.

Certain components of closing costs can be negotiated. While the transfer tax rate itself is fixed by the state, how it is allocated between buyer and seller can be negotiated in the purchase agreement. Buyers can also negotiate seller credits toward closing costs, particularly in balanced or slower markets. Lender fees may vary depending on the lender you choose, so shopping rates and fee structures can reduce costs. Strategic negotiation during the offer stage is where most savings occur, not at the closing table.

Buyers receive a Closing Disclosure at least three business days before closing. This federally required document outlines your final loan terms and all costs associated with the transaction. In New Hampshire transactions, the closing attorney also prepares a settlement statement showing debits and credits for both parties. You should review this document carefully, confirming the transfer tax allocation, escrow funding, prepaid interest, and total cash required. There should be no surprises if expectations were set properly during the contract and loan process.

Prepaid interest covers the interest from your closing date through the end of that month. Because mortgage payments are paid in arrears, you must cover those initial days upfront. If you close early in the month, prepaid interest will be higher. If you close near month-end, it will be lower. For example, closing on June 3 in Gilford results in more prepaid interest than closing on June 28. While this does not change the total interest paid over time, it affects your immediate cash to close.

Your total cash to close includes your down payment plus all closing costs minus any earnest money deposit and negotiated seller credits. The final amount is detailed on your Closing Disclosure. Funds must typically be wired in advance to the closing attorney. For buyers in towns like Meredith or Wolfeboro, the total often reflects transfer tax, escrow reserves, title charges, and lender fees. Careful review and confirmation of wire instructions is critical to avoid fraud.