Buyer Expenses and Responsibilities

Home Buyer House

1. Obtain legal counsel

  • Your attorney will prepare and negotiate the Purchase and Sale Agreement (P&S)
  • Your attorney will advise you on any issues or extensions that arise between the signing of the P&S and the closing
  • Legal counsel will attend the closing with you and review the certification of title, deed, settlement statement, note, mortgage and ancillary closing documents.

2. Have a home inspection done

  • Timeframe of when the inspection needs to be done is noted on the Offer
  • Inspections are at the Buyer’s expense
  • It is recommended the Buyer also test for: radon gas, wood boring insects, and lead paint (if the home is built prior to 1978)
  • If the property is serviced by a private well, a well test for quantity and quality is recommended and sometimes required by lender (estimated cost is $250)
    • Water can also be tested for radon

3. Obtain a Homeowner’s Insurance Policy

  • This policy must be purchased and prepaid for the first year
  • A paid receipt and binder must be provided to the lender’s attorney prior to closing
  • If you are getting a mortgage, your mortgage company will need to be listed on the policy

4. Contact applicable utilities to continue service and transfer into your name

  • Your realtor can assist you with this; and sometimes this is handled by sellers

5. Calendar your Mortgage Financing Contingency date

  • Be sure to have written commitment from your lender with conditions you can reasonably satisfy
  • Contact your attorney or realtor should you need an extension

6. Closing Costs

  • Closing costs may include the following: originator fee, credit report, appraisal fee, processing fee, points, bank attorney fee, etc.
  • A more complete itemization of closing costs can be found on the “Good Faith Estimate,” which is provided to you by your lender
  • An overview of costs, which are collected at closing:
    • Recording fees, payable to the Registry of Deeds, for documents such as the Deed, Mortgage, and Municipal Lien Certificate –approximately $365
    • Prepaid interest (from the day of the closing until the end of the month)
    • Mortgage Inspection Plot Plan—approximately $125
    • Points—each point is 1% of the mortgage amount
    • Lender’s Title Insurance—See Good Faith Estimate (GFE) from your lender for costs
    • Owner’s Title Insurance (if purchased)—See GFE from your lender for costs
    • Adjustments for taxes, fuel and rents (if applicable)