Buyer Closing Costs
Buyer closing expenses vary depending on property value and other factors. To get a clear handle on your closing costs, conferring with your land use attorney, realtor, lender, and your tax accountant are advisable, especially if planning a 1031 exchange.
Here's a thumbnail sketch of common buyer closing costs:
- Deposit Monies.
- Down payment.
- Private Mortgage Insurance (PMI) if putting less than 20% down.
- Loan discount points & origination fees.
- Loan underwriting & processing fees.
- Prepaid interest.
- Credit report & tax service fees.
- Flood certification fee.
- Document preparation.
- Property inspection.
- Property Transfer Tax, Vermont's property sales tax. The tax for Purchasers to use the property as their primary residence are taxed at one-half per cent on the first $100,000 of property value, and 1.25 per cent on the rest of the purchase price. Purchasers intending to use the property as a second home or investment property are taxed at 1.25 per cent on the entire purchase price. Certain exemptions exist. View the Vermont Property Transfer Tax Return.
- Land Use Attorney fees.
- Local tax, utility & other prorations.
- Title & Homeowners Insurance.
- Recording fees for documents filed at the town office.