Buying or selling a home is an exciting experience, but it can also come with a few financial surprises. One area that often catches people off guard is closing costs. These are the fees and expenses that come at the end of a real estate transaction, right before the keys change hands.

In New Hampshire, closing costs vary depending on the home’s price, location, and loan type. Buyers and sellers alike can face unexpected costs that can add up quickly. If you are looking at South Hudson houses for sale or exploring Southern NH houses for sale, it is important to understand what to expect before you reach the closing table.

Let’s take a closer look at some closing costs that might surprise you and how to prepare for them.

What Are Closing Costs?

Closing costs are the expenses you pay when finalizing a real estate transaction. They usually include fees for things like inspections, taxes, insurance, and lender charges.

For most homebuyers, closing costs are typically between 2% and 5% of the home’s purchase price. For sellers, the costs can also include commissions, transfer taxes, and title fees.

Knowing these numbers ahead of time helps you plan your budget and avoid last-minute stress.

Appraisal Fees

When you buy a home, your lender will require an appraisal to determine the property’s market value. The appraiser is a neutral party who ensures the home is worth what you are paying for it.

Appraisal fees can range from $500 to $800 depending on the size and location of the property. This is one of those closing costs that might surprise you if you are not prepared, especially for larger or more rural properties.

If you are buying in areas like South Hudson or Southern NH, where home sizes and property types vary, the appraisal cost can shift slightly.

Home Inspection Costs

A home inspection is not always required by lenders, but it is strongly recommended. Inspections help identify any hidden issues with the home before you commit.

Typical inspection costs run from $400 to $700, depending on the home’s age and size. Sometimes, buyers also order specialized inspections such as radon, well water, or septic system tests. Each additional inspection adds to your closing costs.

The peace of mind is worth every penny, but it can still be a surprise for first-time buyers.

Title Search and Title Insurance

Before a home sale is complete, a title company will perform a title search to ensure that the property is free from legal issues or unpaid liens. The cost for this search can range from $300 to $600.

Title insurance protects both the buyer and the lender from potential ownership disputes that might arise later. The one-time premium is often around $1,000 but can vary.

Although many buyers do not think about it, title insurance is a key part of protecting your investment.

Property Taxes and Prepaid Costs

Another area that can surprise buyers is prepaid property taxes and homeowners insurance. At closing, lenders often require you to pay a portion of these costs upfront.

In New Hampshire, property taxes can vary widely from town to town. If you are buying in South Hudson or other parts of Southern NH, your REALTOR can help you estimate how much you will need to bring to the table.

Buyers may also have to prepay a few months of homeowners insurance. These costs can quickly add up to several thousand dollars.

Recording and Transfer Fees

Recording fees cover the cost of officially recording your deed and mortgage with the county. These fees are usually smaller, often between $100 and $300, but they can vary based on the town.

Transfer taxes, however, can be more significant. In New Hampshire, the real estate transfer tax is $15 per $1,000 of the sale price, split between buyer and seller. For a $400,000 home, that means a total of $6,000 in transfer tax.

This can be one of the larger closing costs that surprises sellers or buyers who did not plan ahead.

Escrow Fees

If your transaction involves an escrow account, there may be additional costs for managing it. Escrow fees are often shared between the buyer and the seller and typically range from $500 to $1,000.

These fees cover the cost of a third party holding funds safely until all parts of the sale are complete. It ensures that everyone meets their obligations before money changes hands.

While it might seem small, every little fee adds up when closing day arrives.

Attorney Fees

In New Hampshire, many buyers and sellers use a real estate attorney to review contracts, title documents, and loan paperwork. While not required by law, having an attorney can prevent costly mistakes.

Attorney fees usually range from $800 to $1,500 depending on the complexity of the sale. Although it is an additional expense, most homeowners find that having an attorney gives them peace of mind.

Your REALTOR can often recommend trusted local attorneys who specialize in real estate transactions in Southern NH.

HOA Fees and Certificates

If you are buying a condo or a home within a homeowners association (HOA), expect additional costs. Many associations charge a one-time fee for preparing documents and transferring ownership.

These costs can range from $200 to over $1,000 depending on the HOA. You may also need to pay the first month’s association fee at closing.

While this can be one of the smaller closing costs, it is still one that often catches buyers by surprise.

Mortgage Origination Fees

Lenders charge origination fees for processing and preparing your mortgage. This fee typically ranges from 0.5% to 1% of the loan amount.

For example, on a $400,000 loan, you could pay around $4,000. It is important to ask your lender about these fees upfront so you can compare costs between different mortgage providers.

Shopping around for a lender with lower fees can save you money in the long run.

Private Mortgage Insurance (PMI)

If you make a down payment of less than 20%, your lender will likely require private mortgage insurance. PMI protects the lender in case you default on the loan.

PMI can cost between 0.3% and 1.5% of your loan amount each year. While it is not technically part of your upfront closing costs, your first premium may be due at closing.

Buyers often forget to include PMI in their budget, but it can have a noticeable effect on your monthly payment.

Credit Report and Courier Fees

Some of the smallest fees can also be the most surprising. Lenders charge a fee for pulling your credit report, which usually costs around $50.

Courier fees may also apply if physical documents are being delivered during your transaction. These can range from $25 to $100. Although they are minor expenses, they still count toward your total closing costs.

Seller Closing Costs to Watch For

Sellers also face closing costs that can come as a surprise. The biggest expense is usually the real estate commission, which is often around 5% to 6% of the home’s sale price.

In addition, sellers may need to cover:

• Their share of the transfer tax

• Unpaid property taxes

• Any agreed-upon repairs

• Title and recording fees

If you are selling your home, work closely with your REALTOR to understand exactly what your net proceeds will look like after these costs are paid.

For those listing South Hudson houses for sale or Southern NH houses for sale, knowing the numbers in advance helps you plan better for your next move.

How to Prepare for Closing Costs

The best way to avoid surprises is to plan ahead. Here are a few tips:

1. Ask for a breakdown early. Your lender and REALTOR can provide an estimate of your total closing costs before you make an offer.

2. Save extra funds. Set aside a little more than you think you will need to cover unexpected expenses.

3. Compare quotes. Some fees, like title services or inspections, can vary. Get multiple quotes to ensure fair pricing.

4. Review your Closing Disclosure. This document, provided before closing, lists every fee in detail. Read it carefully and ask questions if anything seems unclear.

Planning ahead removes stress and helps ensure that closing day goes smoothly.

The Emotional Side of Closing

Reaching the closing table is both exciting and emotional. After months of searching, negotiating, and preparing, buyers are ready to move into their dream home, and sellers are ready for their next chapter.

Knowing what to expect with closing costs allows you to enjoy that moment without financial surprises. It turns what could be a stressful day into one filled with excitement and relief.

Closing Costs That Might Surprise You

Buying or selling a home in New Hampshire is a major milestone. Understanding closing costs ahead of time can make the process smoother, more predictable, and less stressful.

From appraisal fees to transfer taxes, every detail matters. Whether you are looking at South Hudson houses for sale or exploring Southern NH houses for sale, knowing what to expect gives you confidence.

When you work with an experienced REALTOR, you gain a partner who guides you through every step of the process. Together, you can plan wisely, avoid surprises, and focus on what really matters—making your next move with confidence and peace of mind.

If you need more information to understand closing costs, or are ready to sell your house give us a call at (603) 883-8840. You can also sign up for your dream home search or reach out to Our Agents for more information. We’d love to help you with your real estate needs.