Pall Spera Company Realtors-Stowe, VT
Pall Spera Company Realtors-Stowe, VT
Teresa Merelman, Broker, Pall Spera Company Realtors-Stowe, VTPhone: (802) 793-5171
Email: [email protected]

Average closing costs for buyer: What homebuyers should expect

by Teresa Merelman, Broker 11/22/2023

When preparing for a new home purchase, it’s crucial to plan for the average closing costs for buyer hopefuls on a budget. Closing costs are made up of various service charges associated with the entire home buying process, including appraisals and title paperwork. Because closing costs can add up to thousands of dollars, it’s helpful to prepare for the expense.

Here are some of the most common types of closing costs associated with buying a new home:

Appraisal fee

Appraisal fees cover the cost of a professional home appraisal to determine the value of the property. This cost can depend on the size of your home, but generally comes to somewhere between $300 and $400.

Home inspection fee

Professional home inspection fees usually cost a few hundred dollars. While inspections are technically an optional part of the home buying process, most buyers require them to find out if there are any major issues with a home before buying.

Loan origination fee

Mortgage lenders can charge an origination fee for creating the loan itself. This closing cost can vary from one lender to the next, but frequently comes to around 1% of the amount of the mortgage loan.

Title search

The title for your new home needs to be examined for any possible issues such as tax liens. The fee for a title search is typically between $400 and $500 paid to your mortgage lender.

Title insurance

Title insurance is required by lenders to cover the cost of any issues discovered with the property title. Similar to mortgage insurance, this policy protects the lender rather than the buyer. Title insurance often costs around 1% of the total loan amount.

These are not all the possible closing costs for buyers to prepare for. However, these are the most commonly associated with your new home. Inquire with your mortgage lender for more information about additional fees to prepare your budget accordingly.

About the Author
Author

Teresa Merelman, Broker

 Teresa's beginnings were at Fort Belvoir, Virginia. She was child #5 of 8 and born into an Air Force family that moved all over the United States but usually ended up back in the Washington, D.C. area. Teresa attended Miami University in Oxford, Ohio and received her bachelor's degree in business from George Mason University, in Fairfax, Virginia. Some of her prior careers include: computer buyer in Fairfax, Virginia; Deputy Clerk at the U.S. District Court in Denver, Colorado; Police Officer in Steamboat Springs, Colorado; and Bed & Breakfast owner in Stowe, Vermont. Teresa obtained her license as a Realtor® in 1998. She has been through many ups and downs in this profession and continues to learn every day. She very much enjoys the real estate profession and the wonderful people she has met and assisted along the way. In order to serve her clients and customers, Teresa continually attends classes and seminars. Some of her Designations and Certifications include: 

  • ABR - Accredited Buyer Representative (2003)
  • CBR - Certified Buyer Representative (2000)
  • e-PRO - Internet Certified Professional (2001)
  • CNHS - Certified New Home Specialist (2005)
  • CRS - Certified Residential Specialist (2005)
  • AHS - Accredited Home-Stager Specialist (2008)
  • TRC - Transaction Referral Certification (2009)
  • RSPS - Resort and Second Home Specialist (2009)
  • GREEN - NAR's Green Designation (2009) 
  • SFR - Short Sales & Foreclosures Certification (2009) 
  • SRES - Senior Real Estate Specialist Designation (2012)
  • AHWD - At Home With Diversity (2021)
  • SRS - Seller Representative Specialist (2021)

Teresa has also served and continues to serve on several boards:

  • Lamoille Area Board of Realtors - President and Board of Directors
  • Vermont Association of Realtors - Board of Directors
  • NEREN (MLS) - Board of Directors and Shareholder 
  • Vermont Real Estate Commission - as a member of VAR's Liaison Committee
  • Stowe Vibrancy - Board of Directors - this is a volunteer group that promotes activities in the Village of Stowe

In 2007, Teresa was named Vermont Realtor of the Year.Teresa and her husband, a local attorney, moved to Stowe in 1987. They had two sons and Stowe has been their home for the past 36 years. She still feels the Stowe area is a wonderful place to raise a family, there's always something going on. Teresa can often be found behind the lens of her camera documenting the beauty of the area and its many events.As an update, Teresa's older son is now a Doctor/resident at the University of New Mexico's Emergency Management Program. Her younger son graduated from James Mason University and currently resides in Chicago, IL as a supervisor for OKTA.