Vermont Closing Costs Demystified

Closing costs are the expenses you and the seller pay to complete the transfer of ownership, and in Vermont

• Origination fee
  Fee charged by a lender to cover the costs of evaluating and processing your loan, usually a percentage of the loan amount.
• Attorney’s fee covers these services:
  • Review of the purchase and sale agreement
  • Review of the commitment letter from the lender
  • Review of the Warranty Deed from the seller's Attorney
  • Review of the property transfer tax return
  • Title search
  • Assessment of State and Local Permits on the property
  • Preparation of the title insurance commitment
  • Working to resolve any title problems
  • Attending the closing to explain closing documents to you
  • Recording your deed and other documents
  • Issuing the title insurance policies
• Initial escrow payments
  • some portion of property taxes
  • some lenders require a full year, in advance, of homeowner’s insurance to be placed into escrow before closing
• Title insurance
  Protects you and the lender from losses that may result from a dispute over the property's title.
• Vermont Property transfer tax
  The State of Vermont requires the buyer to pay a transfer tax whenever there is a purchase of real estate. The amount of the transfer tax is generally one and a quarter percent of the purchase price. The tax is discounted to one half of one percent for the first $100,000.00 of the purchase price if you use the property as your primary residence.