Closing Costs for Salem Homebuyers

Buying a home in Salem can feel like juggling a lot of numbers. One of the biggest questions you may have is what you will pay beyond your down payment. The short answer is this: closing costs typically run about 2% to 5% of the purchase price. In this guide, you will learn what those costs include, how to estimate them for a Salem purchase, and smart ways to manage or reduce them. Let’s dive in.

Closing costs basics in Salem

Closing costs are the fees and prepaids you pay to finalize your loan and transfer the property to your name. They are separate from your down payment. A simple rule of thumb is to budget 2% to 5% of the purchase price. On a $400,000 home, that is roughly $8,000 to $20,000.

Most buyers pay their own loan and third‑party fees, while sellers typically pay agent commissions. Some items can be negotiated, and seller concessions may reduce your out-of-pocket total. Your exact number depends on your loan type, the closing date, and local fees.

What your closing costs include

Loan fees and lender charges

• Loan origination or processing fee. Often 0.5% to 1.5% of the loan amount, or a flat fee.
• Discount points. Optional. One point equals 1% of the loan to lower your rate.
• Underwriting, application, and processing. Often $300 to $1,000 combined.
• Credit report. About $30 to $50.
• Appraisal. Typically $400 to $800, depending on the property.
• Mortgage insurance. If you put less than 20% down, you may have upfront or monthly mortgage insurance.
• Rate lock fee. Sometimes charged, or built into pricing.

Title and settlement services

• Title search and title insurance. Your lender requires a lender’s policy. An owner’s policy is optional but often recommended. Premiums vary by price and state rate schedules.
• Settlement or attorney fee. Often $300 to $1,000. Some areas use attorneys, others use title companies. Ask what is standard in Salem.
• Recording fees. Charged by the county or town to record your deed and mortgage. Usually tens to a few hundred dollars in total.
• Survey fee. If required, often $300 to $1,000 or more.
• Courier and document prep. Small flat fees.

Inspections and property tests

• Home inspection. About $300 to $600 depending on size and age.
• Radon test. About $100 to $300. Many New England buyers request this.
• Well water test. About $50 to $200 if the home has a private well.
• Septic inspection. About $300 to $600 if the home has a septic system.
• Pest inspection. About $50 to $300 if needed.

Prepaids and escrows

• Prepaid interest. Covers interest from your closing date until your first payment.
• Homeowners insurance. Often the first year premium paid at closing, or first month plus an escrow cushion.
• Property tax escrow. Lenders often collect several months of taxes at closing. New Hampshire property taxes are municipal, and timing varies by town.
• HOA fees. If applicable, you may owe prorated dues or reserves at closing.

Taxes and recording in New Hampshire

Some states or counties charge real estate transfer or conveyance taxes. Confirm with the New Hampshire Department of Revenue Administration whether any transfer tax applies to your purchase and who typically pays it. Deed and mortgage recording fees are set by the Rockingham County Registry of Deeds. Exact amounts change over time, so ask your title company or closing attorney to confirm the current fee schedule.

Exact fees in Salem depend on Town and County recording charges and your lender. For precise numbers, contact the Town of Salem Tax Collector for property tax billing and proration timing, and the Rockingham County Registry of Deeds for recording fees.

Salem specifics to keep in mind

• Private wells and septic systems are common in parts of Southern New Hampshire. Plan for well water testing and septic inspections if the home is not on public services.
• Radon testing is a frequent buyer request in New England and is relatively inexpensive.
• Property taxes are billed at the town level in New Hampshire. Ask your lender and title company how taxes will be prorated based on Salem’s billing cycles and your closing date.
• Salem closings may involve either a title company, an attorney, or both. Ask your agent and lender what is typical for your transaction so you can plan for the correct settlement fee.

How much to budget: simple examples

Use the 2% to 5% rule to set expectations. Here are two quick scenarios. These are estimates and your actual number will vary with your loan, insurance, taxes, and exact fees.

• $300,000 purchase price. Estimated closing costs about $6,000 to $15,000.
• $500,000 purchase price. Estimated closing costs about $10,000 to $25,000.

A typical mix in these totals includes lender fees, appraisal, title and settlement, inspections you choose, prepaid interest, one year of homeowners insurance, and several months of property taxes collected for escrow. Your lender and title company will refine these numbers based on your file.

How to estimate your closing costs

1. Get a Loan Estimate from your lender. This standardized document lists your lender fees and projected prepaids.
2. Request title fee quotes from two local title companies or real estate attorneys. Ask for both lender’s and owner’s title policies, settlement fees, and recording estimates.
3. Add planned inspections and tests. Include home inspection, radon, well, septic, and any HOA transfer fees.
4. Confirm escrow deposits. Ask your lender how many months of insurance and property taxes they will collect at closing.
5. Sum all items. Present your total as a range to account for timing and any negotiated credits.

Ways to reduce or manage costs

• Shop multiple lenders for Loan Estimates. Fees and rates can vary more than you expect.
• Ask for seller concessions in your offer. Market conditions guide how much you can request.
• Negotiate specific items. For example, who pays the appraisal or certain fees can sometimes be adjusted.
• Consider lender credits. You may be able to reduce upfront costs in exchange for a slightly higher rate.
• Decide on owner’s title insurance with care. It adds to closing costs but provides protection against certain past title issues.
• Look into down payment or closing cost assistance. New Hampshire Housing and local programs may offer grants or loans if you qualify.
• Time your closing. Closing near the start of a month can reduce prepaid interest.

What to request before closing

• Loan Estimate from your chosen lender and at least one comparison lender.
• Title fee quote and title commitment from your title company or attorney.
• Preliminary Closing Disclosure when available, then the final Closing Disclosure.
• Tax and escrow worksheet showing how property taxes are prorated.
• All inspection reports and any negotiated repair agreements.
• Homeowners insurance binder and proof of premium.
• Secure wire instructions from your settlement company.

Local verification and next steps

• Town of Salem Tax Collector and Assessing Department. Confirm tax rates, billing cycles, and proration.
• Rockingham County Registry of Deeds. Confirm recording fees and any required forms.
• New Hampshire Department of Revenue Administration. Verify state transfer or documentary tax rules.
• Local title companies or real estate attorneys. Request title insurance premiums and settlement fees.
• Local mortgage lenders. Ask for a sample Loan Estimate and typical escrow setup.
• New Hampshire Housing. Check eligibility for down payment or closing cost assistance.

Buying in Salem should feel clear and manageable. With the right plan, you can understand your costs, compare options, and avoid surprises on closing day. If you want a personalized estimate and local guidance from offer to keys, connect with Shannon Dipietro to schedule a free buyer consultation.

FAQs

Who typically pays closing costs in Salem, NH?

• Buyers usually pay their loan and third‑party fees, while sellers often pay agent commissions, and specific items can be negotiated in the contract.

When are closing costs due for a Salem home purchase?

• Your closing funds are due at closing, and any earnest money you paid is credited toward the total cash to close.

Can I roll Salem closing costs into my mortgage?

• In many cases you can use lender credits or finance certain costs, which may increase your loan amount or affect your rate and payment.

Are there programs in New Hampshire to help with closing costs?

• New Hampshire Housing and some local programs may offer grants or loans for eligible buyers, subject to guidelines and availability.

Will the seller cover my appraisal or inspections in Salem?

• Inspections are typically paid by the buyer, while appraisal and some fees can be negotiated depending on the deal.

How are property taxes handled at closing in Salem, NH?

• Property taxes are municipal in New Hampshire, and your lender and title company will prorate taxes based on Salem’s billing cycle and your closing date.