Closing Costs for Buyers in New London County

What will you really pay on closing day in New London County? If you are budgeting for a shoreline home, the mix of lender fees, inspections and local items can feel confusing. You want a clear number before you wire funds and sign. This guide breaks down typical buyer closing costs, what is unique to our coast, and how to plan and reduce what you pay. Let’s dive in.

What closing costs cover

Closing costs are the one-time fees and prepaids you pay to finalize your purchase, separate from your down payment. As a rule of thumb, buyers often pay 2% to 5% of the purchase price. On a $400,000 home, that is about $8,000 to $20,000, depending on your loan, title insurance and escrow deposits. In Connecticut, attorneys commonly handle closings, and waterfront properties may add inspections or insurance.

Typical buyer fees in New London County

Lender and loan charges

• Origination or lender fee: often 0.25% to 1.0% of the loan, or a flat $400 to $1,500.
• Appraisal: typically $400 to $900. Complex or waterfront homes can be higher.
• Credit report: $25 to $75.
• Underwriting and processing: often $400 to $1,200 combined.
• Mortgage points: optional, each point equals 1% of the loan amount.
• Prepaid interest: from closing date to your first payment.
• Initial escrow deposits: usually 2 to 3 months of taxes and homeowners insurance.

Inspections and property condition

• General home inspection: $300 to $700.
• Septic inspection: $300 to $700 when applicable.
• Well water test: $100 to $300.
• Termite or wood-destroying insect: $75 to $250.
• Radon test: $100 to $300.
• Specialty reports for waterfront structures or seawalls: $500 to $2,500+ as needed.

Title, closing and attorney

• Title search and exam plus lender’s title insurance: premium varies with price and insurer.
• Attorney or settlement fee: often $400 to $1,200.
• Lender’s title policy: typically required by your lender.

Recording, taxes and municipal items

• Recording fees to the town clerk: generally $50 to $250, depending on documents.
• State or local transfer taxes: responsibility depends on your contract and local custom.
• Property tax prorations: you reimburse the seller for taxes already paid past your closing date.

Condo and association costs

• Condo application or transfer fees: $100 to $500.
• Estoppel or resale certificate: often $250 to $500.
• HOA dues prorations: based on the closing date.

Other shoreline-related items

• Survey if required: $400 to $1,500+.
• Flood determination: $50 to $150; flood insurance may be required in mapped zones.
• Elevation certificate if needed for flood insurance: $500 to $2,000+.

Shoreline factors that affect totals

• Flood zones and insurance: Many coastal parcels fall in FEMA flood zones. If your home is in a required zone and you have a mortgage, you will need flood insurance. The premium and escrow deposit can raise your cash-to-close.
• Septic and well: Coastal and rural homes often rely on private systems. Expect septic evaluations and water testing. Findings can drive further costs or negotiations.
• Seawalls and coastal structures: Older bulkheads or seawalls may require engineering assessments. These reports add costs but help you plan long-term maintenance.
• Insurance market dynamics: Coastal properties can have higher homeowners premiums and wind or hurricane deductibles, which can increase your initial escrow deposit at closing.

How costs vary by property and deal type

Cash vs financed

• Cash buyers skip lender fees, appraisals and mortgage escrows. You still pay title, attorney, recording, inspections and prorations. Your total is usually much lower than a financed purchase.

Condo vs single-family

• Condos often add association application and estoppel fees. Inspection scope can be smaller for the unit interior, but budget for HOA paperwork costs.

Waterfront or shoreline

• Plan for potential elevation certificates, flood insurance, added surveys, and coastal or structural reviews. These items can add $1,000s depending on property and findings.

Vacant land

• Appraisals and surveys may cost more. Title costs can be lower, but due diligence on utilities and buildability adds to your budget.

Price point

• Flat fees like inspections and attorney time change little. Percentage-based items, such as origination points or title premiums, scale with price.

When and how you get exact numbers

• Loan Estimate: After you apply, your lender must provide a Loan Estimate within three business days. Use it to compare lenders and understand fees.
• Closing Disclosure: At least three business days before closing, your lender will issue the Closing Disclosure with final terms and costs.
• Settlement statement: Your attorney or title company provides the final statement showing total funds due. You will typically wire certified funds for this amount on closing day.

Quick budgeting examples

These are planning ranges only. Actuals come from your lender and attorney.

• Example A — $350,000 single-family, financed:

  • Lender fees and appraisal: $3,000 to $6,000
  • Title and attorney plus lender’s policy: $1,500 to $4,000
  • Inspections and surveys: $500 to $2,000
  • Initial escrow deposit: $1,500 to $4,000
  • Recording and miscellaneous: $200 to $600
  • Estimated total: roughly $6,700 to $16,600

• Example B — $300,000 condo, financed:

  • Lender fees and appraisal: $2,500 to $5,000
  • Title and attorney: $1,200 to $3,000
  • Condo and inspection fees: $400 to $1,000
  • Escrow deposit: $1,000 to $3,000
  • Estimated total: roughly $5,000 to $12,000

Ways to reduce or control closing costs

• Compare lenders and Loan Estimates. Look at rate, points and origination fees.
• Ask about lender credits or negotiate seller concessions within loan program limits.
• Shop title services and ask about combined pricing.
• Sequence inspections smartly. Start with a general inspection, then add specialty tests as needed.
• Negotiate who pays the owner’s title policy, depending on local custom and your contract.
• Time your closing near month-end to reduce prepaid interest.

Your step-by-step plan for New London County

1. Get preapproved and request a Loan Estimate from at least two lenders.
2. Ask your agent to request a title and closing estimate early in the process.
3. Order the right inspections for the property type. For shoreline homes, plan for septic, well, radon and, if applicable, seawall or coastal assessments.
4. Verify flood zone status and potential need for an elevation certificate. Ask your insurance agent for a quote before you waive contingencies.
5. Confirm expected recording fees with the town clerk in your specific town. Each town sets its own schedule.
6. Review your Closing Disclosure and settlement statement carefully. Wire only to verified instructions.

Ready to buy on the shoreline?

If you want a clear roadmap from offer to closing, you are in the right place. With decades on the Connecticut coast and a focus on waterfront details, you will get straight answers and a smooth process. For tailored guidance and an exact budget for your target home, connect with Jennifer Gurnell.

FAQs

Who typically pays buyer closing costs in Connecticut?

• Many buyer costs include lender fees, appraisal, inspections, title services for the loan and escrows, while items like owner’s title policy or certain transfer taxes depend on contract and local custom.

When will I know my exact cash to close for a New London County home?

• Your lender’s Loan Estimate comes within three business days of applying, and the Closing Disclosure at least three business days before closing provides your final numbers.

Can a New London County seller contribute to my closing costs?

• Yes, seller concessions are common and can cover a portion of your costs, subject to loan program limits and successful negotiation in the purchase contract.

Are any buyer closing costs tax-deductible in Connecticut?

• Some items like prepaid mortgage interest and points may be deductible, while many fees are not; consult a tax professional for your situation.

How much extra should I budget for a waterfront purchase in New London County?

• Plan for potential added inspections, surveys, flood-related documents and higher insurance, which can add from a few thousand dollars to much more depending on the property.