What if the biggest surprise in your Conway home purchase was not the house at all, but the final number you need to bring to closing? If you are a first-time buyer, it is normal to wonder how much cash you will actually need beyond your down payment. You want a clear, local answer you can trust.
In this guide, you will learn what closing costs usually include, how much to budget for a Conway purchase, the local items that can change your total, and a simple way to estimate your costs early. You will also get tips to reduce surprises and feel confident on closing day. Let’s dive in.
What closing costs include
Closing costs fall into two buckets. Understanding these helps you plan and compare quotes.
Lender and loan fees
These are charges from your mortgage lender. You will commonly see:
- Origination or underwriting fee, often 0.5–1.0% of the loan amount.
- Discount points, optional, paid to lower your interest rate.
- Credit report, typically $25–50.
- Processing or admin fees, often $300–800.
- Appraisal, usually $350–800, higher for complex properties like log homes or cabins.
- Rate-lock or extended lock fees, if charged by the lender.
Tip for Conway: compare community banks, credit unions, and mortgage brokers. Some local lenders use lower flat fees.
Title, settlement, and recording
These protect your ownership and record your purchase. Expect:
- Title search and closing or settlement fee, often $300–900 combined.
- Lender’s title insurance, commonly required by the lender.
- Owner’s title insurance, optional but recommended to protect your equity.
- Recording fees and town clerk charges, typically modest but confirm with the Town of Conway.
- Transfer taxes, which vary by state and practice. Ask your title company or the town clerk who typically pays and the amount for your transaction.
Prepaid items and escrows
These are advance payments set aside at closing. They often include:
- One year of homeowner’s insurance, due at or near closing. Premiums can be higher for second homes or properties near flood-prone areas.
- Property tax proration and an escrow deposit. Lenders usually collect a few months of taxes to start your escrow account.
- Prepaid mortgage interest from your closing date to the first payment.
- Flood insurance for homes in a flood zone if your lender requires it.
Inspections and surveys
You choose these to evaluate the home and systems. In and around Conway, common items are:
- General home inspection, typically $350–700.
- Radon test, usually $150–300.
- Septic inspection and dye test, about $300–700, plus pump-out or repairs if needed.
- Well inspection and water quality testing, often $150–400.
- Chimney or woodstove inspection or oil tank check, usually $150–350.
- Wood-destroying insect inspection, often $75–200.
- Survey or boundary stake-out, about $400–1,500 if needed.
Other possible items
- HOA or condo transfer or resale package, often $100–500.
- Attorney fees if you hire counsel, commonly $500–1,500 or more.
- Private mortgage insurance (PMI) upfront amounts or first-month payments for loans with less than 20% down.
- Lender-required inspections for certain loan types.
How much to budget in Conway
Plan for about 2–5% of the purchase price for buyer closing costs, not including your down payment. On a $350,000 home, that is roughly $7,000–$17,500.
You may land near the lower end if you have minimal lender fees, straightforward inspections, and some seller-paid costs. You may land near the higher end if you purchase a vacation home, need flood insurance, order several specialized inspections, or have higher prepaids and escrows.
Local factors that change costs
Septic and well systems
Many properties outside the villages use private wells and onsite septic. Budget for inspections and possible pump-outs. If a test uncovers issues, you may negotiate repairs with the seller, but you should keep cash available for last-minute items.
Heating fuel and older systems
Older homes may have oil heat or buried tanks. Inspections for chimneys, woodstoves, or tanks are common. If an issue appears, the fix can affect your closing timeline and out-of-pocket costs.
Floodplain proximity
Homes near the Saco River, its tributaries, or valley lowlands may be in a FEMA flood zone. Lenders can require flood insurance for the loan. Your first year’s premium may be collected at closing.
Vacation-home lending and insurance
Second-home loans often have different down payment rules, and insurers may charge higher premiums for seasonal homes. Both can push closing costs and prepaids higher than a primary residence.
Access, easements, and surveys
Mountain and rural lots sometimes have shared driveways or conservation easements. You may choose to order a survey or have documents reviewed, which can add fees.
Estimate your total early
Use this simple approach to build a realistic range before you go under contract:
- Property taxes
- Ask the Town of Conway assessor for the most recent annual tax amount for the specific property. Your lender will prorate taxes to your closing date and collect a cushion for your escrow account.
- Homeowner’s insurance
- Request ballpark quotes from local agents for both primary and second-home coverage. Note that premiums can be higher near flood-prone areas or for seasonal occupancy.
- Fixed and common fees
- Add typical items: appraisal ($350–800), title and settlement fees ($500–1,500), recording fees ($25–200), and your likely inspection package ($600–1,500 for home plus radon and septic or well as applicable).
- Lender fees
- Include origination or underwriting at 0.5–1.0% of the loan amount, plus $300–900 for credit, processing, and admin.
- Express as a percent
- Total the items above, then divide by your purchase price to see your range. If the number seems high, ask your lender and title company where you can save or what is discretionary.
- Confirm with a Loan Estimate
- After you apply, your lender must provide a Loan Estimate within three business days. It is your best early, itemized view of closing costs for your specific loan.
Ways to avoid surprises
- Compare at least three Loan Estimates. Look beyond the rate to total lender fees and prepaids.
- Ask a local title or settlement company for sample title premium quotes for your price range in Carroll County.
- Request key documents with your offer: recent tax bill, any available survey, septic service records, well test results, and system manuals. Fewer unknowns means fewer late surprises.
- Include inspection contingencies and schedule likely Conway tests in one sweep: home, radon, septic, well, chimney or woodstove, and oil tank if present.
- Consider seller concessions to cover some closing costs. Ask your lender about limits based on your loan type.
- Protect your funds from wire fraud. Always verify wiring instructions with your title company using a trusted phone number before sending money.
- Keep a small buffer of liquid cash for last-minute cures such as a septic pump-out or small repairs.
What to expect at closing
You will receive a final Closing Disclosure at least three business days before closing. Review it carefully and ask questions about any line item that is unclear.
On closing day you will typically bring a cashier’s check or send a wire for your total cash to close. This total includes your down payment, closing costs, and prepaids such as insurance and property taxes.
You will likely see lender’s title insurance on your statement. An owner’s title policy is optional, but it can protect you from certain future title claims. Ask your title agent for a sample quote and coverage summary.
Who to call in Conway
- Lender or mortgage broker for itemized Loan Estimates and escrow rules.
- Local title or settlement company for exact title premiums, recording fees, and closing charges.
- Town of Conway assessor and town clerk for property tax history and any local recording fees or transfer practices.
- Local inspectors for firm quotes on home, septic, well, radon, chimney or woodstove, and pest checks.
- Insurance agents who know Carroll County for primary versus second-home policies and flood coverage if needed.
Ready to run your numbers or talk through a property you like in Conway or North Conway? Reach out for local, educator-style guidance from an owner-operated brokerage that knows the Mt. Washington Valley. Connect with Ryan Mahan to plan your purchase with clarity and confidence.
FAQs
Who pays buyer closing costs in New Hampshire?
- Buyers typically pay lender fees, title and settlement charges, inspections, and prepaids, while sellers pay real estate commissions and any negotiated concessions. Confirm in your purchase and sale agreement.
How much should a first-time buyer budget in Conway?
- Plan on about 2–5% of the purchase price for closing costs, not including your down payment. Complex inspections or higher insurance can push totals higher.
Can I roll closing costs into my mortgage?
- Some costs can be financed if your lender and loan program allow it and your loan-to-value fits guidelines. Prepaid items like taxes and insurance are usually collected at closing.
Do New Hampshire programs help with closing costs?
- State housing finance agencies and local nonprofits may offer down payment or closing cost assistance to eligible first-time buyers. Ask about current options and qualification rules.
What document gives the most accurate estimate?
- The lender’s Loan Estimate provides the best early, itemized picture of your costs, and the Closing Disclosure issued before settlement is the final version.
What local inspections should I plan for in Conway?
- In addition to a general home inspection and radon test, many buyers add septic and well checks, chimney or woodstove inspections, and oil tank evaluations depending on the property.
How are property taxes handled at closing?
- Your lender prorates taxes to your closing date and usually collects a few months of taxes to start your escrow account. Ask the Town of Conway for the latest annual tax figure to estimate.
Will a condo or HOA add fees to my closing?
- Many associations charge a transfer or resale packet fee, often $100–500. Your lender may also adjust escrow amounts based on HOA dues and insurance arrangements.
