Vermont First-Time Home Buying FAQs

Financing & Closing

How much do I need for a down payment?

Most buyers do not need 20% down. Many Vermont loan programs allow 3%–5% down, and some buyers may qualify for 0% down options. The best way to understand your options is to speak with a lender and get pre-approved before starting your search.

Learn more: Find a Local Lender

How long does it take to close on a home in Vermont?

Most Vermont home purchases close within 45 to 60 days after an offer is accepted. The timeline depends on lender processing, appraisal scheduling, inspection timelines, and how quickly contingencies are completed. Rural properties, seasonal demand, and weather conditions can extend timelines slightly

What do closing costs include?

Closing costs in Vermont include lender fees, prepaid interest, property taxes, homeowner’s insurance, and attorney-related expenses. Buyers may also pay for inspections, title insurance, and recording fees. Vermont transactions often include prorations for heating fuel and property taxes, which are less common in other states.

Learn More: Closing Costs

What’s included in my monthly mortgage payment?

A monthly mortgage payment includes principal and interest on the loan. Many Vermont buyers also pay property taxes, homeowner’s insurance, and mortgage insurance as part of an escrowed payment. Lenders provide a full breakdown in the loan estimate and closing disclosure so buyers understand each component before closing.

What could delay loan approval or closing?

Loan delays typically result from changes in income, employment, or credit during the transaction. Appraisal issues, incomplete documentation, or delays in inspections can also impact timing. Vermont properties with unique characteristics—such as seasonal access, wells, or septic systems—may require additional review by lenders.

Can property taxes and insurance be paid separately?

Some loan programs allow buyers to pay property taxes and insurance separately rather than including them in a monthly escrow payment. This option is more common with larger down payments or lower loan-to-value ratios. Buyers should confirm options with their lender, as requirements vary by loan type and risk profile.

Is it safe to wire funds for a home purchase?

Wire fraud is a known risk in real estate transactions. Buyers should never send funds based on email instructions alone. All wiring instructions must be verified verbally using a trusted phone number for the lender, attorney, or escrow agent. Vermont transactions commonly involve attorneys, so buyers should confirm details directly with the closing office.

Learn more: How We Protect Your Privacy & Security

Do I need a local lender in Vermont?

Working with a local Vermont lender helps buyers navigate regional requirements, including appraisal timelines, rural property considerations, and state-specific programs. Local lenders are often accessible and more familiar with aspects specific to the Vermont market.

Learn more: Find a Local Lender

What should Vermont buyers know about inspections?

Inspections are a standard part of Vermont transactions and often include home, radon, water, septic, or chimney evaluations depending on the property. Older homes, rural properties, and lakefront homes may require additional due diligence, which can affect both cost and timeline.

In competitive situations, some buyers choose to waive or limit inspection contingencies to strengthen their offer. While less common than during peak pandemic conditions, this approach still occurs in multiple offer situations. Buyers should understand the risks involved and discuss options carefully with their Realtor® before making that decision.