Closing day in Ellington comes with a second price tag that can surprise first-time buyers: closing costs. You want to plan your budget with confidence and avoid last-minute stress. In this guide, you’ll learn what closing costs include, how much to budget in Ellington, where local numbers come from, and simple ways to keep costs in check. Let’s dive in.
What closing costs include
Closing costs cover the services and prepaids needed to finalize your mortgage and transfer the property to you. They usually fall into these categories:
- Lender charges for your loan, including origination, underwriting, appraisal, credit report, and any discount points.
- Title and settlement services, such as the title search, title insurance, attorney or settlement fees, and recording costs.
- Prepaid items and escrow deposits for homeowner’s insurance, property taxes, and prepaid interest.
- Inspections and property condition services, like general home, radon, termite, well, or septic inspections.
- Government and municipal fees, including deed and mortgage recording fees and any state-level transfer taxes.
- Situational items, such as a survey, HOA transfer or capital contribution fees, or lender-required repairs.
If you want a plain-English overview of each item, the Consumer Financial Protection Bureau offers helpful guides to the Loan Estimate and the Closing Disclosure.
How much to budget in Ellington
A practical rule of thumb is to plan for about 2% to 5% of the purchase price in buyer closing costs. Your actual number depends on your loan type, whether you purchase discount points, the size of your escrow deposits, and whether you choose optional items like an owner’s title insurance policy.
Loan programs can also change the picture. FHA loans include an upfront mortgage insurance premium, and VA loans include a funding fee. If you qualify for down payment or closing-cost assistance through the Connecticut Housing Finance Authority, you may reduce out-of-pocket costs.
Typical line items in Connecticut
Lender fees and mortgage items
- Origination or processing: often 0.5% to 1.0% of the loan amount.
- Underwriting and processing fees: typically $300 to $1,000 combined.
- Appraisal: about $350 to $800 for most single-family homes.
- Credit report: about $25 to $50.
- Discount points: optional, where 1 point equals 1% of the loan amount.
- Prepaid interest: covers interest from closing to your first payment.
Tip: Request Loan Estimates from at least two lenders so you can compare fee structures, rates, and total cash to close.
Title, settlement, and recording
- Title search and exam: commonly $150 to $400.
- Lender’s title insurance: premium based on loan amount.
- Owner’s title insurance (optional but recommended): one-time premium based on purchase price.
- Attorney or settlement fee: often $400 to $1,200 depending on complexity.
- Recording fees: usually $50 to $200 total, based on the number of documents recorded.
In Ellington, recording fees are collected by the Town Clerk. You can confirm current procedures and department contacts on the Town of Ellington website.
Prepaids and escrow deposits
- Homeowner’s insurance: lenders usually collect the first year at closing. Amounts vary widely, often $600 to $2,000 per year in Connecticut.
- Property tax escrow: lenders typically collect 2 to 6 months of taxes plus any prorations due between you and the seller. The exact amount ties to Ellington’s mill rate and billing cycle.
- Flood insurance: required only if the property is in a flood zone.
For current mill rates and tax billing details, check with the Assessor or Tax Collector via the Town of Ellington website.
Inspections and property condition
- General home inspection: about $300 to $700 for a standard single-family.
- Specialty inspections: radon $100 to $250, septic $300 to $700, well testing $150 to $400, termite/WDI $75 to $200.
Many Ellington properties use private wells and septic systems, so plan for those inspections when applicable.
HOA and condo fees
- Transfer fees, capital contributions, and resale certificates often range from $100 to $400 where associations exist.
Government and transfer taxes
- Connecticut has state-level conveyance or transfer tax rules. You can review statewide guidance with the Connecticut Department of Revenue Services. Ellington does not typically add an extra municipal transfer tax, though you should confirm with the Town Clerk.
Ellington-specific checks to confirm
- Recording fees and procedures: Town Clerk office, found via the Town of Ellington website.
- Property taxes and mill rate: Assessor or Tax Collector pages on the town site.
- Well and septic information: Ellington Health Department can advise on local requirements.
- Lender quotes: request a written Loan Estimate from each lender you consider; federal rules require the LE within three business days of your application.
- Title and settlement fees: ask a local title company or real estate attorney for a sample fee sheet or premium schedule for Ellington properties.
- State transfer tax rules: verify with the Connecticut Department of Revenue Services.
For a broader overview of closing costs and closing forms, you can also review resources from HUD.
Sample budgets for Ellington homes
These examples use typical Connecticut ranges and assume a conventional loan at 80% loan-to-value, no HOA, and standard inspections. Your final numbers will vary.
Example A: $300,000 purchase
- Loan origination and processing: $900 to $3,000
- Appraisal: $400 to $650
- Credit report and underwriting: $50 to $500
- Title search, lender’s policy, optional owner’s policy: $900 to $2,500
- Settlement or attorney fee: $400 to $1,000
- Home inspection: $350 to $600
- Radon, termite, septic, or well as needed: $150 to $700
- Homeowner’s insurance (first year): $700 to $1,200
- Property tax escrow (estimate 2 to 6 months): $300 to $1,200
- Recording and misc.: $100 to $300
- Estimated total: about $6,000 to $12,000
Example B: $400,000 purchase
- Loan origination and processing: $1,600 to $4,000
- Appraisal: $450 to $750
- Title, insurance, and closing fees: $1,100 to $3,000
- Settlement or attorney: $500 to $1,200
- Inspections and specialty tests: $350 to $1,000
- Prepaids and escrow deposits: $1,000 to $2,200
- Recording and misc.: $150 to $350
- Estimated total: about $8,000 to $16,000
Example C: $500,000 purchase
- Loan origination and processing: $2,000 to $5,000
- Appraisal: $500 to $900
- Title, insurance, and settlement: $1,300 to $4,000
- Inspections: $350 to $1,200
- Prepaids and escrow deposits: $1,200 to $3,000
- Recording, misc., and attorney: $200 to $500
- Estimated total: about $10,000 to $25,000
At the high end, totals often reflect owner’s title insurance, discount points to lower your rate, more complex legal work, or larger escrow deposits based on timing and tax requirements.
How to estimate and lower your costs
- Request multiple Loan Estimates. Compare interest rates, APRs, lender fees, and cash-to-close figures side by side. The CFPB’s LE guide shows what to look for.
- Time your closing date. Closing late in the month can reduce prepaid interest for that first partial month.
- Consider seller concessions. You can negotiate for the seller to contribute to closing costs, within your loan program’s limits.
- Ask about discount points. Buying down your rate can make sense if you plan to stay long enough to break even. Compare total cost and time horizon.
- Shop homeowners insurance. Quotes can vary, and your first-year premium is typically paid at closing.
- Choose inspections wisely. Do not skip safety-critical items. For Ellington properties with private well and septic, budget for those tests.
- Review your Closing Disclosure early. You must receive the CD at least three business days before closing. Use the CFPB’s CD guide to compare it to your Loan Estimate.
- Explore assistance programs. First-time buyers may find down payment or closing-cost help through the Connecticut Housing Finance Authority.
Final thoughts
Closing costs do not have to be a moving target. When you understand each line item and verify Ellington’s recording and tax practices, you can set a realistic budget and avoid surprises. If you want a second set of eyes on your scenario or need local intros to lenders, attorneys, or inspectors, reach out to Cindy Muska for a calm, step-by-step plan.
Important note: Figures in this article are estimates and illustrative ranges only. Your exact closing costs depend on your loan terms, seller concessions, inspection findings, and current municipal fees. Always request written estimates and confirm Ellington-specific fees with town offices and local service providers.
FAQs
How much are buyer closing costs in Ellington?
- Plan for about 2% to 5% of the purchase price, with the low end for conventional loans and minimal extras and the high end when you buy discount points, choose owner’s title insurance, or have larger escrow deposits.
Can the seller pay my closing costs in Ellington?
- Yes, seller concessions are negotiable and can cover some buyer closing costs, but limits apply based on your loan program and lender guidelines.
How do Ellington property taxes affect my cash to close?
- Expect prorated taxes between buyer and seller plus an escrow deposit for several months of future taxes; the exact amount depends on Ellington’s mill rate and billing cycle.
Are inspections required for Ellington homes?
- Lenders usually require an appraisal, not a general home inspection, but inspections are strongly recommended; septic and well testing are common for Ellington homes with private systems.
What documents should I review before closing in Connecticut?
- Review your Loan Estimate, inspection reports, title report if available, and your Closing Disclosure, which you must receive at least three business days before closing.
