Thinking about buying in Salem and torn between New Hampshire and Massachusetts? You are not alone. Cross-border shoppers often ask which side of the line leads to lower closing costs and fewer surprises. In this guide, you will learn what buyer closing costs include, how MA and NH practices differ, and how to estimate your cash-to-close with clear, illustrative examples. Let’s dive in.
What your closing costs include
Closing costs are the one-time expenses you pay to finalize a purchase. Most buyers see costs in these buckets:
- Lender fees and points, appraisal, credit report, and flood certification if you take a mortgage.
- Title and settlement services, including lender’s title insurance, optional owner’s title insurance, title search, and the settlement or attorney fee.
- Recording fees for the deed and mortgage, plus any transfer or conveyance taxes if applicable in the town or state.
- Prepaids, such as the first year of homeowners insurance, pre-paid mortgage interest, and tax prorations.
- Initial escrow deposits that fund your tax and insurance account if your lender requires impounds.
- Inspections and any municipal or HOA fees, such as condo transfer charges.
MA vs. NH: What typically differs
Title and closing professionals
Both states rely on title insurance, but how the closing is handled can differ. In Massachusetts, attorneys commonly conduct closings. In New Hampshire, closings are handled by title companies or attorneys depending on local custom. Title insurance premiums are set by insurer schedules that vary by state, so request quotes for each state before you compare.
Recording and transfer taxes
Every property records a new deed, and most financed purchases record a mortgage. Recording fees are set by the county registry and vary by document type. If you are purchasing in Salem, the Rockingham County Registry handles recordings for town properties.
Some transactions include a state or local transfer tax or excise at the time of sale. Who pays it depends on local custom and your purchase contract. In Massachusetts, review the deeds excise guidance with the Massachusetts Department of Revenue to understand how excise may apply and who may pay. In New Hampshire, consult the New Hampshire Department of Revenue Administration for transfer tax guidance, and check county recording procedures for exact fees.
- Learn about Massachusetts deeds excise via the Massachusetts Department of Revenue: deeds excise overview.
- For New Hampshire transfer tax and tax administration, visit the New Hampshire Department of Revenue Administration.
- For recording in Rockingham and Strafford Counties, use the statewide portal at NHDeeds.org.
Property taxes and escrow accounts
The mechanics of prepaids and escrow deposits are similar in both states, but local tax calendars matter. New Hampshire relies heavily on local property taxes, and towns bill on their own schedules. The billing cycle in the town where you buy affects your tax proration at closing and the initial escrow amount your lender requires.
Inspections and municipal items
You will budget for a home inspection and optional tests like radon. Some towns require septic or well certifications. If you are buying a condo, factor in association transfer or document fees. These items exist on both sides of the border, but the exact requirements are town-specific.
How to estimate your cash-to-close
Start by asking your lender for a Loan Estimate. It includes lender fees, required prepaids, and a cash-to-close summary for that loan scenario. Your title company or closing attorney will quote title premiums and settlement fees. Combine those with inspections and recording fees to build a reliable estimate.
Below are illustrative examples only. Always verify with your lender, title company, and the recording office for the property’s county.
Example A: Typical financed purchase (illustrative)
Assumptions: purchase price $400,000; 5 percent down ($20,000); loan amount $380,000.
- Earnest money paid earlier: $5,000 credited at closing.
- Remaining down payment due at closing: $15,000.
- Estimated buyer-paid closing costs:
- Lender fees and points: $2,000 to $4,000.
- Appraisal: $450 to $700.
- Credit report and application: $50 to $150.
- Lender’s title insurance premium: $800 to $2,000.
- Owner’s title insurance (optional but recommended): $1,200 to $2,500.
- Settlement or attorney fee: $400 to $1,200.
- Recording fees: $100 to $400.
- Prepaid interest: about $625 for 15 days at 4.0 percent on $380,000.
- Homeowners insurance: $600 to $1,200.
- Initial escrow deposit: $1,000 to $3,000.
- Inspections: $400 to $1,200 combined.
- HOA or condo transfer fees if applicable: $0 to $500.
Estimated cash-to-close excluding the remaining down payment: roughly $8,625 to $17,075. Including the remaining down payment, the total is about $23,625 to $32,075.
Notes for MA vs. NH: recording fees and title premiums can differ by state and county. Transfer or excise taxes, if applicable where you are buying, depend on local rules and your contract, so confirm payer and amounts early.
Example B: All-cash purchase (illustrative)
Assumptions: purchase price $400,000; no mortgage.
- Owner’s title insurance (recommended): $1,200 to $2,500.
- Recording fee for the deed: $50 to $200.
- Inspections: $300 to $800.
- Property tax proration: depends on closing date and local tax cycle.
Estimated cash-to-close excluding the purchase funds: about $1,600 to $3,500.
Who typically pays what
- Transfer or excise taxes: It depends on the state, local custom, and your purchase contract. Do not assume the seller always pays. Confirm for the town where the property is located.
- Recording fees: Buyers typically pay to record their mortgage and often share or separately handle deed recording per contract.
- Title insurance: Lender’s title policy is usually a buyer cost on financed purchases. The owner’s policy is optional but often recommended.
- HOA or condo fees: Transfer fees and move-in charges vary by association and can be assigned to buyer or seller in your contract.
Your disclosures and timing protections
Federal rules require your lender to deliver two key documents that help you compare MA and NH closings:
- The Loan Estimate within three business days of your application. It shows estimated costs and cash-to-close.
- The Closing Disclosure at least three business days before closing. It finalizes the numbers and lets you review changes.
Use these to compare side by side and ask your lender or title company to explain any differences across state lines.
Salem buyer checklist
- Ask your lender for a Loan Estimate for a NH purchase and, if you are considering MA, a comparable LE for that scenario too.
- Confirm whether your loan requires an escrow account and request the initial escrow deposit estimate.
- Get written title quotes for both lender’s and owner’s policies, plus the settlement fee.
- Check exact recording fees with the county where the property records. For Salem and nearby towns, start at NHDeeds.org and select Rockingham or Strafford.
- Verify property tax billing schedules and recent amounts with the town assessor to estimate prorations and escrow needs.
- Budget for inspections and any municipal certifications, such as septic or well, if required by the town.
- Ask your title company or attorney for a preliminary settlement statement once your contract is accepted and compare it with your Loan Estimate.
- Build a 5 to 10 percent cushion over itemized estimates to cover prorations or last-minute adjustments.
Where to verify exact fees
- Massachusetts deeds excise and related guidance: Massachusetts Department of Revenue.
- NH transfer tax and tax administration: New Hampshire Department of Revenue Administration.
- County recording fees and instructions for Salem area properties: NHDeeds.org for Rockingham and Strafford.
Bottom line for Salem buyers
The biggest differences you will notice are who handles the closing, how title premiums and recording fees are quoted, and whether a state or local transfer tax is part of your purchase. Your exact cash-to-close depends on your loan terms, the town’s tax calendar, and your contract. If you want a precise, apples-to-apples comparison for the homes on your shortlist, reach out to a local team that works both sides of the line. For a custom estimate and a clean path to closing, connect with Davis McVay.
FAQs
How do MA vs. NH buyer closing costs compare for Salem shoppers?
- They cover similar categories, but title and recording fees, plus any transfer or excise tax, can differ by state and county; use a Loan Estimate and title quotes for exact figures.
Who pays transfer or excise taxes in MA and NH?
- It depends on state and local custom and your purchase contract; confirm early with your agent, lender, and closing attorney or title company.
Can I roll closing costs into my mortgage in either state?
- Some costs can be financed if your lender and loan program allow, which lowers cash-to-close but increases the loan amount; ask your lender to model options on the Loan Estimate.
Do I need owner’s title insurance if the lender has a policy?
- The lender’s policy protects the lender, not you; an owner’s policy is optional but often recommended to protect your equity against covered title defects.
How do property taxes affect my escrow in Salem, NH?
- Your lender sets the escrow based on the town’s tax schedule and current tax amounts; timing of local bills changes your initial deposit and monthly escrow payment.
