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1. When will I receive my final closing cost figures/HUD Settlement Statement?
Donovan Law makes every attempt to get you a copy of the HUD Settlement Statement which states the final closing costs to you at least one day prior to closing. However, we can not create one until we receive the necessary paperwork from the lender. Often, we do not receive this until just before closing, usually 1-2 days before but occasionally the day of. As soon as we receive it, we create the HUD and then fax copies to the buyer and seller, agents, and lender. You will need to contact your lender directly to find out when they will be sending the paperwork to us. |
2. Can I bring a personal check to closing for my settlement costs?
NO. You must a bring a BANK CHECK or CERTIFIED CHECK or have the funds wired directly to our account prior to closing. We will not be able to proceed with the closing if you do not have certified funds.
3. What are tax stamps/deed stamps?
In the state of New Hampshire, tax stamps are collected whenever a property is transferred. This is a one-time fee that is split between the buyer and the seller; it is essentially an excise tax. The current rate is $15.02 per thousand of the purchase price (i.e. $7.52 each).
In Massachusetts, the entire tax stamps are paid by the seller. The rate in Massachusetts is currently $4.58 per thousand of the purchase price.
4. When are taxes collected and which months do they cover?
In New Hampshire, most tax bills are due semiannually and although it varies from town to town, the tax year is generally April 1 - March 31. With seminannual taxes the due dates are December 1 and July 1. The December tax bill covers October 1 through March 31 and the July bill covers April 1 through September 30. However, there are towns that collect quarterly and annually. For confirmation, please contact the local town office where the property that is being purchased is located.
In Massachusetts, the tax year is from July 1 - June 30. Most tax bills are due quarterly. They are generally due on February 1, May 1, August 1, and November 1. The February tax bill covers January 1 through March 31, May covers April 1 through June 30, August covers July 1 through September 30 and November covers Oct 1 through December 31.
However, there are towns that collect semiannually and annually. For confirmation, please contact the local town office where the property that is being purchased is located.
5. When can I schedule my closing?
The date, time and place of a closing can not be scheduled until we have approval from the lender. You can tentatively put in a date and time but that date and time can not be guaranteed and are not firm until the lender authorizes it. Once authorized, we will contact all parties involved (buyer, seller, brokers, and loan representatives) to set and confirm a date, time and place.
6. Why do I need owner's title insurance when I already have a homeowner's insurance policy?
Homeowner's insurance only protects against damage related issues to the property (fire, liability, earthquake, etc.); it does not protect you if your ownership of the property itself is questioned; title insurance does. See the Title Insurance section for more information.
7. Why do I need two title insurance policies? I'm already purchasing one for the lender; do
I really need one for me?
The title insurance policy you've purchased for the lender is required but only protects them if the right to the property itself is questioned; IT DOES NOT PROTECT YOU. Therefore, if a title issue occurs, the bank would still receive their money for what they have invested but you could spend a lot of money fighting for your property and possibly even lose your home if you don't have owner's title insurance. See the Title Insurance section for more information.
8. Who should I make my check out to for my closing costs?
Your certified or bank check for closing costs should be made payable to yourself. We will have you endorse it over to Donovan Law Office at closing. It should not be endorsed by you until you get to the closing.
9. Where will my closing take place?
Most of the time, we conduct closings at our Salem office located on Main Street in Southern New Hampshire (click here for directions to the Salem office). Occassionally we may close at our Windham office located on Range Road in Windham, NH or at alternate locations when needed such as the Registry of Deeds or a brokers office. Usual closing hours are between 9:00 a.m. and 5:00 p.m., Monday through Friday. The office is normally closed on bank holidays.
For additional questions not answered above, please click on the Contact button and submit your question via email. |
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