How to Buy a House in New Hampshire: A Homebuyer’s Guide
Updated: March 3, 2023
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In the past year, the average value of a house in New Hampshire has increased by approximately 14%, reaching over $440K — much higher than the national average of $357K.
While this is the average value of a home in New Hampshire, cost will vary by location, with rural and suburban areas often being cheaper than urban ones. To reduce the cost of your home, you can take advantage of homebuyer assistance programs offered in the state.
Understanding the homebuying process can help you save money and find the best home for you. MoneyGeek's homebuyers guide focuses on the essential steps for potential homeowners, including submitting a mortgage application, negotiating a deal and avoiding significant debt.
Choose an Ideal Location
Location is one of the main factors that homebuyers take into account. The cost of your home and mortgage will vary substantially based on where you choose to live. In addition to finding the best place to buy a house in New Hampshire, you should consider the cost of living, the proximity to facilities, the culture of the area and the availability of recreational amenities in your desired location.
Calculate Mortgage Rates
Multiple factors directly impact the cost of your mortgage, including the type of mortgage and lender, as well as borrower details like your credit score and financial history. MoneyGeek recommends evaluating your financial history and needs to find the best mortgage for you.
Prepare Down Payment Requirements
In most cases, you will need to make a down payment to purchase a house in New Hampshire. Certain types of loan require little to no down payment, while others require a minimum down payment of 20%.
Get Pre-Approved for a Mortgage
After choosing a lender, the next important step is pre-approval. With pre-approval, you can discuss terms with the lender and gauge the interest rates available to you.
Keep in mind that pre-approval is not the same thing as pre-qualification. When you prequalify for a loan, your lender simply provides you with an estimated loan amount. With pre-approval, a lender conditionally commits to provide you a specified loan amount and rate.
Conduct a Home Inspection
A home inspection is a crucial stage in the buying process. Though it is normally funded by the buyer, depending on the results of the inspection, it could actually save the buyer money. For instance, any repairs or damages identified during the inspection may allow the borrower to negotiate for better terms.
Close Your Mortgage Loan
After a thorough examination of the loan terms, you may close your mortgage deal. Keep in mind that even the best places to buy a house in New Hampshire are subject to closing costs.
Closing costs are the amount you pay the lender to cover the credit report, appraisal and document processing expenses. Additionally, the cost of a home appraisal, legal services and a pest inspection may be included.
New Hampshire Homebuying Details
As a homebuyer in New Hampshire, you should explore the neighborhood, evaluate alternative financing possibilities and study lenders that align with your objectives. Although these are common homebuying steps, there may be state-specific requirements.
To prepare to buy a home in New Hampshire, contact your lender or a real estate professional for local market requirements. Additionally, you can qualify for homeowner assistance programs in New Hampshire that can alleviate the financial burden of homeownership.
As more individuals move to New Hampshire in search of its breathtaking natural landscapes, rich history as a hub of the American Revolution, thriving arts and cultural scene and relatively inexpensive cost of living, housing prices have risen.
The New Hampshire Housing Home Flex Plus program provides homeowners with financial assistance. The support comes in the shape of a second mortgage that is entirely forgiven after four years. Applicants must complete a homebuyer education course and have a family income that does not exceed $151,200.
Frequently Asked Questions About Buying a Home in New Hampshire
MoneyGeek provided responses to some of the most commonly asked questions to make the homebuying process in New Hampshire as simple as possible.
Buying a house is an important life event. To make the best decision for you, you should ask yourself the following questions:
- What are my non-negotiables in terms of location (access to amenities, quality schools, healthcare, etc.)?
- Am I financially prepared to make monthly payments for several years?
Purchasing a home in New Hampshire is not suitable for everyone. However, if it is your desired location and you are confident that you can make a substantial financial commitment, it may be a great option for you.
According to data, the average home price in New Hampshire in 2022 has increased by over 10% from the previous year. This indicates that purchasing a home in New Hampshire is an appreciable investment.
The cost of living in New Hampshire is relatively low compared to other states. However, the cost of living varies amongst cities. To determine the precise cost of living in your area, you can use MoneyGeek’s cost of living calculator.
Though the property tax rate in New Hampshire varies by county, in general, property tax in the state is higher than in other states. You should review the property tax rates by county in New Hampshire to find the one for your location.
While many New Hampshire cities offer affordable, high-quality housing options, Newport, Rochester and Berlin are among the state's most affordable cities.
sources
- Zillow. "New Hampshire Home Values." Accessed October 24, 2022.
- Zillow. "United States Home Values." Accessed October 24, 2022.
- Zillow. "Compare Today's Mortgage Rates in New Hampshire." Accessed October 24, 2022.
- US Department of Agriculture. "Single Family Housing Direct Home Loans in New Hampshire." Accessed October 24, 2022.
- FHA. "FHA Down Payments For Homebuyers." Accessed October 24, 2022.
- Tax Foundation. "Taxes In New Hampshire." Accessed October 24, 2022.
- International Association of Certified Home Inspectors. "Home Inspection Standards of Practice." Accessed October 24, 2022.