Are you wondering how much cash you will need at the closing table in Boston? You are not alone. Between lender fees, title charges, and condo costs, the numbers can feel unclear until late in the process. By understanding each line item now, you can budget with confidence, avoid last‑minute surprises, and negotiate smarter. In this guide, you will learn typical Massachusetts buyer closing costs, Boston-specific condo fees, realistic examples, and practical steps to keep costs in check. Let’s dive in.
What Boston buyers typically pay
As a starting point, typical buyer closing costs in the U.S. often fall between about 2% and 5% of the purchase price, excluding your down payment. For many Boston transactions, a working range of 2% to 4% is reasonable, with costs trending higher for condos with association fees or higher-priced homes. The final numbers depend on your loan type, what is negotiated in the offer, and local custom.
Massachusetts has several local practices that affect who pays what. For example, the owner’s title insurance policy is often paid by the seller in many Boston transactions, but this is negotiable and not universal. Also, federal rules require your lender to deliver a Closing Disclosure at least three business days before closing. Use that window to compare your numbers to earlier estimates and ask questions.
Line-by-line buyer closing costs in Massachusetts
Below are the most common items Boston buyers see at closing. Your attorney, lender, and settlement agent will confirm final details.
Loan-related fees (if you are financing)
Loan origination, processing, underwriting
- What it is: The lender’s charge to process, underwrite, and fund your loan.
- Who pays: Buyer (unless you negotiate a seller credit).
- Typical range: About $500 to $3,000. Some lenders quote origination as up to about 1% of the loan amount.
Discount points (optional)
- What it is: Prepaid interest that lowers your mortgage rate. One point equals 1% of the loan.
- Who pays: Buyer if chosen. Sometimes covered by a seller concession.
- Typical range: Based on the loan amount and rate market.
Appraisal
- What it is: Independent valuation required by most lenders.
- Who pays: Buyer.
- Typical range: About $400 to $900 in metro markets. Some condos cost more for full interior and exterior inspections.
Credit report
- What it is: Your lender’s pull of your credit history.
- Who pays: Buyer.
- Typical range: About $25 to $50.
Application, commitment, and miscellaneous lender fees
- What it is: Additional processing or underwriting charges that vary by lender.
- Tip: Ask for an itemized Loan Estimate to compare lenders.
Title, recording, and settlement charges
Lender (mortgagee) title insurance
- What it is: Protects the lender against title defects.
- Who pays: Buyer, by custom in Massachusetts.
- Typical range: Premium scales with the loan size and can be a few hundred to a few thousand dollars on higher loans.
Owner’s title insurance
- What it is: Protects your ownership interest against covered title issues.
- Who pays: Often the seller pays in many Boston and Massachusetts transactions, but it is negotiable. Confirm in your offer and purchase and sale agreement.
- Typical range: If the buyer pays, the premium is generally comparable in scale to the lender’s policy and is a one-time cost.
Recording and Registry of Deeds fees
- What it is: County charges to record the deed and mortgage.
- Who pays: Buyers usually pay mortgage recording; deed recording is sometimes paid by the seller, but practices vary.
- Typical range: About $50 to $300. Check the Suffolk County Registry of Deeds for the current schedule.
Title search and settlement/closing agent fee
- What it is: Title examination, document preparation, and the closing agent’s services.
- Who pays: Often paid by the buyer or shared, depending on the agreement.
- Typical range: Several hundred dollars.
Attorney fees
- What it is: In Massachusetts, buyers and sellers commonly retain attorneys. Your attorney reviews contracts, coordinates the closing, and handles recording.
- Who pays: Buyer pays their own counsel.
- Typical range: About $800 to $2,500 for a standard residential purchase. Complex matters can be higher.
Prepaids and escrow reserves
These items are often the largest cash components at closing.
Prepaid interest
- What it is: Mortgage interest from the closing date until your first payment period.
- Who pays: Buyer.
- Typical range: A few hundred to a few thousand dollars, depending on loan size and the closing date.
Homeowner’s insurance (first-year premium)
- What it is: Lenders often require proof of a paid one-year policy at or before closing.
- Who pays: Buyer.
- Typical range: Roughly $500 to $2,000 or more per year depending on the property and coverage.
Initial escrow deposits
- What it is: Funds the lender holds for property taxes and insurance.
- Who pays: Buyer.
- Typical range: Commonly equal to about 2 to 3 months of combined tax and insurance payments. This can total several thousand dollars depending on local tax bills.
Property tax proration
- What it is: Credits that balance taxes paid or owed based on the closing date. You may reimburse the seller for taxes they prepaid that cover your ownership period.
Boston condo and co-op charges
Condo buyers should expect a few building-specific line items.
Move-in and elevator reservation fees
- What it is: Building administration charges for move coordination.
- Who pays: Typically the buyer for move-in, but it can be negotiable.
- Typical range: Often $100 to $500 or more depending on the building.
Resale package or condo document fee
- What it is: Bylaws, budget, meeting minutes, and other required documentation.
- Who pays: Often the seller, but some associations bill the buyer. Check the condo’s rules.
- Typical range: Commonly $150 to $400. Some buildings charge more.
Board/application fees
- What it is: Fees for application processing or questionnaires.
- Typical range: About $50 to $200 or more.
Lender or insurer condo requirements
- What it is: Extra condo questionnaires or reserve requirements may increase appraisal or documentation costs and extend timelines.
Government, transfer, and municipal items
Transfer taxes and documentary stamps
- What it is: State or municipal transfer costs that may be allocated by contract or local custom.
- Who pays: Varies by agreement and municipality. Confirm with your attorney or title company.
Municipal adjustments
- What it is: Water and sewer adjustments, outstanding municipal liens, or code-related payoffs that need to be cleared at closing.
Miscellaneous items
Flood certification or survey
- What it is: Lender flood zone certification is common. Full surveys are less common in urban Massachusetts unless requested.
- Typical range: Flood cert about $20 to $50. Surveys can range from several hundred dollars to over $1,000.
HOA or condo reserves
- What it is: Some associations require a reserve contribution at closing. Amounts vary.
Example closing-cost budgets for Boston buyers
These examples are illustrative to help you translate percentages into dollars. Actual totals depend on your loan, negotiations, and building policies.
Example A: $500,000 Boston condo
- Guideline total: 2% to 4% equals $10,000 to $20,000.
- Typical breakdown:
- Lender fees, appraisal, credit: $1,000 to $3,000
- Attorney: $1,000 to $2,000
- Lender title insurance and recording: $500 to $1,500
- Owner’s title policy if buyer pays: $800 to $2,000 (often seller pays)
- Prepaids and escrows: $2,000 to $6,000
- Condo docs and move-in fees: $150 to $500
- Miscellaneous (flood, courier, etc.): $100 to $500
Example B: $850,000 single-family home
- Guideline total: 2% to 4% equals $17,000 to $34,000.
- Notes: Expect larger escrow deposits for property taxes, higher title premiums, and possibly more prepaid interest if you close early in the month.
Example C: $1.5 million home
- Budget conservatively: $30,000 to $75,000 depending on who pays the owner’s title policy, any transfer taxes, and escrow amounts.
- Higher-value homes often land at the upper end of the percentage range in absolute dollars.
How to reduce and manage closing costs
- Shop lenders and compare written Loan Estimates. Rates and fees vary. Ask each lender to itemize origination, points, credits, and third-party charges so you can make an apples-to-apples comparison.
- Negotiate seller credits. You can request the seller to pay specific costs as part of your offer. This is more common in buyer-friendly markets and less common in highly competitive situations.
- Consider lender credits. Some buyers choose a slightly higher interest rate in exchange for lender credits that reduce cash due at closing. Understand the long-term tradeoffs before you decide.
- Clarify who pays the owner’s title policy early. If the seller pays by local custom or agreement, that can lower your cash to close.
- Explore assistance programs. MassHousing, the City of Boston Home Center, and certain nonprofit programs sometimes offer down payment or closing cost help for eligible buyers. Requirements apply, so start the process early.
- Plan condo fees ahead. Ask the association or management company for the exact resale package cost, any move-in requirements, and whether there are pending special assessments.
- Protect your funds from wire fraud. Confirm all wiring instructions by phone with your attorney or title company using a verified number, not just email.
- Review your Closing Disclosure as soon as you receive it. By rule, it must arrive at least three business days before closing. Compare it to your Loan Estimate and flag any surprises with your lender and attorney.
Closing-day timeline and checklist
Here is a simple sequence to help you prepare for a smooth finish.
Timeline highlights
- Receive Closing Disclosure at least 3 business days before closing.
- Resolve any last-minute changes that might require re-disclosure and a delayed date.
- Confirm exact cash-to-close and how funds must be delivered.
What to bring and confirm
- Government-issued photo ID.
- Certified funds or a verified wire confirmation for the amount due to close. Confirm wiring instructions by phone with your attorney or settlement agent.
- Proof of homeowner’s insurance binder naming your lender as mortgagee.
- Any final documents your lender requested to clear conditions.
- Contact information for your attorney, lender, and agent.
Final checks before signing
- Verify property tax prorations, utilities, and any condo fee adjustments.
- Confirm recording fees and ask when the deed will record and when you will receive keys.
- After closing, note your first mortgage payment due date, escrow details, and how to access your first statement.
Final thoughts for Boston buyers
Closing costs are not one number. They are a set of moving pieces that depend on your loan, property type, and negotiated terms. If you plan with a 2% to 4% range, add condo-specific fees where relevant, and verify who pays the owner’s title policy, you will be well prepared. Your best protection is an experienced, detail-oriented team that reviews each charge and keeps your timeline on track.
If you would like attorney-level guidance on your Boston purchase, we are here to help. Reach out to the team at Capital Realty Group to review your budget, compare lender options, and map a clear path to the closing table. Schedule a free consultation.
FAQs
How much should a Boston buyer budget for closing costs?
- Start with 2% to 4% of the purchase price as a working range, then add condo fees and consider higher absolute dollars for more expensive homes.
Who usually pays the owner’s title insurance in Boston?
- Local custom varies. In many Massachusetts and Boston transactions the seller often pays the owner’s policy, but it is negotiable and should be confirmed in your contract.
When will I know my exact closing costs before closing?
- You receive a Loan Estimate after application and a Closing Disclosure at least three business days before closing that outlines the expected final costs.
Are closing costs in Massachusetts negotiable for buyers?
- Yes. You can negotiate seller credits, shop lenders to reduce fees, or consider lender credits that lower cash due at closing.
Can closing costs be financed or covered by assistance?
- Some costs can be rolled into the mortgage through lender credits tied to rate, and certain programs may offer assistance. Seller credits are also common when negotiated.
