Sticker shock at the closing table is real. Between lender fees, title work, and condo charges, it can feel like costs come out of nowhere. You want a clear number to plan for, and you want to know which items are fixed, which are negotiable, and what’s standard in Boston. This guide lays out typical ranges, Boston-specific nuances, and a simple method to estimate your cash to close with confidence. Let’s dive in.
What closing costs include in Boston
Closing costs are the fees and prepaid items needed to complete your purchase and mortgage. They cover lender charges, appraisal and credit checks, title insurance and recording, attorney or settlement fees, inspections, condo-related fees, and prepaid taxes and homeowners insurance.
As a planning rule, expect total buyer closing costs of about 2% to 5% of the purchase price. Cash purchases often land near the lower end, while financed purchases trend higher due to lender fees and initial escrow deposits. Boston’s condo market also adds association transfer and document charges that can surprise first-time buyers.
Local recordings are handled at the Suffolk County Registry of Deeds. For recording practices and current fee schedules, check the Massachusetts Land Records portal for the Suffolk County Registry of Deeds.
Typical buyer cost categories
Loan-related costs
- Loan origination or processing fee: often 0.5% to 1% of the loan amount. You can negotiate or ask about lender credits.
- Underwriting, application, and processing: commonly $400 to $1,500 combined.
- Discount points: optional. One point equals 1% of the loan amount to lower the rate.
- Appraisal: usually $400 to $900 in the Boston area, depending on property type and complexity.
- Credit report: often $25 to $75.
- Rate-lock or extension: some lenders charge for extended locks.
- Mortgage insurance: upfront premiums may apply for certain loans and down payments. Some programs allow these to be financed into the loan.
- Lender’s title insurance: typically required by lenders and customarily paid by the buyer in Massachusetts.
Title, settlement, and recording
- Owner’s title insurance policy: in Massachusetts, it is often custom for the seller to pay for the owner’s policy, but this varies by negotiation and local practice. Confirm who pays in your purchase and sale agreement.
- Title search and settlement: several hundred to a couple thousand dollars depending on provider and complexity.
- Government recording fees: set per document and paid to the county/registry. These are generally modest but should be confirmed with the Suffolk County Registry of Deeds.
- Transfer taxes or excise: state or local conveyance taxes may apply and are often paid by the seller. Confirm current rules with the Massachusetts Department of Revenue and your closing attorney.
Inspections and condo-related items
- Home inspection: typically $300 to $800+ depending on size and scope.
- Specialized inspections: pest, radon, chimney, or other checks usually add $100 to $600 each.
- Condo association fees: estoppel or transfer charges and document fees are often $100 to $500 or more, depending on the association’s policy. Timing and who pays may be negotiable or set by the condo’s rules.
- Municipal liens or betterments: special assessments, water/sewer betterments, or municipal liens can appear in due diligence and are often prorated at closing.
Prepaids and escrow deposits
- Property taxes: prorated at closing, plus initial escrow deposits for future installments if you have a mortgage.
- Homeowners insurance: lenders typically collect the first-year premium and several months of escrow upfront.
- Initial escrow/impound deposit: often 2 to 6 months of tax and insurance payments to seed the escrow account. This can be several hundred to several thousand dollars depending on tax cycle and premiums.
Closing, legal, and service fees
- Buyer’s attorney: common in Massachusetts. Expect several hundred to a couple thousand dollars depending on scope and experience.
- Settlement/closing agent fee: sometimes separate from attorney fees.
- Courier, recording copies, notary, and document prep: usually $50 to $300 combined.
- Wire and funding fees: $25 to $50 per wire. Always verify wire instructions by phone to a known number to prevent fraud.
Boston-specific surprises to plan for
- Condo line items: estoppel certificates, association transfer fees, and disclosures about reserve studies or special assessments can add hundreds, and assessments can be larger if active.
- Owner’s title policy custom: many Massachusetts sellers cover the owner’s title policy, but it is not guaranteed. Clarify early in negotiations.
- Municipal assessments: water, sewer, or other betterments may be identified during title review and prorated at closing.
- Attorney-involved closings: Massachusetts closings often include attorneys, which affects your fee lines and who prepares documents.
Estimate your cash to close
Use this simple method to get in the right ballpark:
- Step 1: Estimate closing costs at 2% to 5% of the purchase price.
- Step 2: Add initial escrow deposits at roughly 0.5% to 1.5% of the price, depending on local taxes and insurance.
- Step 3: Add flat items: inspections ($300 to $1,000), appraisal ($400 to $900), attorney/settlement ($500 to $2,000), condo estoppel ($100 to $500 for condos), and your first year of homeowners insurance (varies widely).
- Step 4: Add any upfront mortgage insurance or discount points if you plan to buy the rate down.
Illustrative examples
These are sample ranges for planning only. Always confirm exact numbers with your lender and closing attorney.
- Modest condo at $450,000: closing costs at 2% to 4% equal $9,000 to $18,000. Add appraisal around $500, inspection about $450, attorney/title near $1,200, and condo estoppel around $200. Initial escrow deposits may be $2,000 to $4,000. Rough cash to close, excluding your down payment: about $12,000 to $25,000.
- Mid-range single-family or brownstone at $800,000: closing costs at 2% to 4% equal $16,000 to $32,000. Add appraisal about $600, inspections $600 to $1,000, attorney/title near $1,500, and initial escrow $3,500 to $8,000. Rough cash to close, excluding down payment: about $22,000 to $45,000.
What you can negotiate or shop
- Compare lenders: line up multiple Loan Estimates and compare origination fees, points, and credits. Ask about a lender credit if you want lower cash to close in exchange for a slightly higher rate.
- Ask for seller concessions: you can request the seller contribute to your closing costs, often as a flat dollar amount or percentage. Loan program limits may cap concessions.
- Title and attorney fees: request itemized quotes from several local firms. Confirm what is included and whether courier, notary, and wire fees are separate.
- Inspection scope: choose the inspections you need. Skipping optional tests can save money but may add risk.
- Points and rate strategy: weigh the tradeoff between upfront points and monthly savings. Consider your break-even timeline.
Disclosures, timelines, and certainty of numbers
Federal rules require lenders to provide a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. These documents outline your exact closing costs and cash to close. To understand these forms and your rights as a borrower, review the CFPB’s Owning a Home resources.
Ask your attorney or settlement agent for a preliminary closing statement several days before closing. This helps you verify prorations, concessions, and who pays each title policy. Finally, confirm wiring instructions by phone using a verified number to avoid fraud.
Local resources for specifics
- Suffolk County recording and procedures: Suffolk County Registry of Deeds
- State excise and tax rules: Massachusetts Department of Revenue
- Consumer mortgage forms and timelines: CFPB Owning a Home
- Down payment and closing-cost assistance: MassHousing and City of Boston housing programs
Work with a team that anticipates costs
You deserve a straightforward, Boston-specific plan for your cash to close. Our team guides you through each line item, confirms who pays what in your purchase and sale, and coordinates with your lender and attorney so there are no surprises on closing day. If you are buying a condo or a design-forward home, we also help you understand association charges and insurance needs so you can budget with clarity.
Ready to move with confidence? Connect with Covelle & Company to build your budget, compare options, and navigate Boston’s closing process with white-glove support from offer to keys.
FAQs
How much should a Boston buyer budget beyond the down payment?
- Plan for about 2% to 5% of the purchase price for closing costs, plus initial escrow deposits for taxes and insurance that can add several hundred to several thousand dollars.
Who usually pays the owner’s title insurance in Massachusetts?
- It is often custom for the seller to pay the owner’s policy while the buyer pays the lender’s policy, but this varies by negotiation; confirm in your purchase and sale agreement.
Are Boston condo transfer or estoppel fees significant?
- They are usually modest, often in the hundreds, though special assessments can be larger; review condo documents and confirm any fees early in your contingency period.
Can a buyer roll closing costs into the mortgage in Massachusetts?
- Some costs, such as certain mortgage insurance premiums, may be financed into the loan, but lenders set limits and rules; ask your lender how financing costs would affect your rate and payment.
What form of payment is required at a Boston closing?
- Expect to provide certified funds or a wire for your cash to close, along with ID and an insurance binder; verify accepted methods and wire instructions with your closing attorney in advance.
