What are closing costs?

Question 1

Kathleen Militello · Accepted Answer

Closing costs are the one-time fees paid at closing on top of your down payment, and in Massachusetts they typically run about 2% to 5% of the purchase price. They cover the lender, the title work, the appraisal, the attorney, and the prepaid items. Expect lender fees, the appraisal, a credit report, title insurance, recording fees, and attorney costs, plus prepaids like property taxes and homeowners insurance collected by the lender. It is a list of many modest items that add up, so plan for it. Your lender is required to give you a clear estimate early in the process, and I read it with you so nothing is a surprise at the table. Some of these are negotiable and some are not, but understanding each line removes the anxiety from the wire transfer. Massachusetts is an attorney state, so legal fees are a standard part of the buyer's closing costs here, and Massachusetts buyers also pay deed excise on some transactions depending on how the agreement assigns it, so read the estimate carefully.

Question 2

How much are closing costs in Massachusetts?

Kathleen Militello · Accepted Answer

Closing costs are the one-time fees paid at closing on top of your down payment, and in Massachusetts they typically run about 2% to 5% of the purchase price. They cover the lender, the title work, the appraisal, the attorney, and the prepaid items. Expect lender fees, the appraisal, a credit report, title insurance, recording fees, and attorney costs, plus prepaids like property taxes and homeowners insurance collected by the lender. It is a list of many modest items that add up, so plan for it. Your lender is required to give you a clear estimate early in the process, and I read it with you so nothing is a surprise at the table. Some of these are negotiable and some are not, but understanding each line removes the anxiety from the wire transfer. Massachusetts is an attorney state, so legal fees are a standard part of the buyer's closing costs here, and Massachusetts buyers also pay deed excise on some transactions depending on how the agreement assigns it, so read the estimate carefully.

Question 3

What other costs should I expect besides my down payment?

Kathleen Militello · Accepted Answer

Closing costs are the one-time fees paid at closing on top of your down payment, and in Massachusetts they typically run about 2% to 5% of the purchase price. They cover the lender, the title work, the appraisal, the attorney, and the prepaid items. Expect lender fees, the appraisal, a credit report, title insurance, recording fees, and attorney costs, plus prepaids like property taxes and homeowners insurance collected by the lender. It is a list of many modest items that add up, so plan for it. Your lender is required to give you a clear estimate early in the process, and I read it with you so nothing is a surprise at the table. Some of these are negotiable and some are not, but understanding each line removes the anxiety from the wire transfer. Massachusetts is an attorney state, so legal fees are a standard part of the buyer's closing costs here, and Massachusetts buyers also pay deed excise on some transactions depending on how the agreement assigns it, so read the estimate carefully.

What are closing costs?

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