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    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.

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