Wondering what you’ll actually pay to close on a Boston home? You’re not alone. Closing costs can feel mysterious until you see them broken down line by line. In this guide, you’ll learn what Boston buyers typically pay, how condo and single-family costs differ, and a simple way to estimate your cash to close with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time charges and prepayments needed to finalize your purchase. In the Boston and Suffolk County market, they usually fall into four buckets:
- Third-party fees: appraisal, inspection(s), title search, recording.
- Lender charges: origination or points, underwriting and processing, credit report, and often the appraisal.
- Title and legal: title insurance and the closing attorney or settlement agent’s fee.
- Prepaids and initial escrow: homeowner’s insurance, property taxes, prepaid interest, and any HOA or condo dues.
Most fees are paid at closing. Some smaller items, like the appraisal and inspection, are paid earlier. In financed purchases, plan on total buyer closing costs of about 2% to 5% of the purchase price, with your exact number driven by loan choice, property type, and timing.
Line-by-line Boston costs
Here’s what you’re likely to see in a Suffolk County purchase and why each item exists.
Lender and application fees
Credit report and application
- What it covers: pulling credit and processing your loan application.
- When paid: early in the process or at closing.
- Boston note: modest amount; some lenders waive it.
Origination fee and discount points
- What it covers: the lender’s charge to create the loan; points are prepaid interest to lower your rate (1 point equals 1% of the loan amount).
- When paid: at closing unless financed.
- Boston note: widely variable by lender and market. Compare your Loan Estimates carefully.
Appraisal
- What it covers: a lender-required valuation of the property.
- When paid: ordered after application; often paid upfront and nonrefundable.
- Boston note: urban appraisals can run higher because comps are complex. Condos can require extra project review.
Inspections and specialty reports
Home inspection
- What it covers: a condition check of structure and systems.
- When paid: at time of inspection.
- Boston note: older rowhouses and triple-deckers may warrant more thorough inspections. Radon testing is common in New England.
Specialty inspections
- What it covers: optional or conditional reports like radon, sewer scope, lead paint, or oil tank checks.
- When paid: at the time of service.
- Boston note: condos rarely need sewer scopes; older single-family homes may benefit from additional investigations.
Title, attorney, and recording
Title search and title insurance
- What it covers: verifies the ownership chain and provides insurance against covered title defects. A lender’s policy is usually required; an owner’s policy protects your equity.
- When paid: at or before closing.
- Boston note: Massachusetts closings commonly involve attorneys. Who pays for an owner’s policy varies by local custom and negotiation.
Closing attorney or settlement agent fee
- What it covers: handling the closing documents, coordinating funds, and recording.
- When paid: at closing.
- Boston note: fees vary by firm and complexity.
Recording fees
- What it covers: recording the deed and mortgage at the Suffolk County Registry of Deeds.
- When paid: at closing.
- Boston note: the Registry publishes a fee schedule with fixed amounts per document. Your closing team will quote the exact figures.
Transfer or excise taxes
- What it covers: taxes applied to certain transfer documents depending on state and local practice.
- When paid: at closing.
- Boston note: who pays is driven by Massachusetts rules and local custom; most transfer-related taxes in many markets are seller-paid, but confirm your contract and local practice.
Prepaids and escrow
Initial escrow deposits
- What it covers: upfront cushions for property taxes, homeowner’s insurance, and mortgage insurance if required.
- When paid: at closing.
- Boston note: lenders often collect 2 to 6 months of taxes and insurance depending on time of year and billing cycles.
Prepaid interest
- What it covers: interest from your funding date to your first regular payment.
- When paid: at closing.
- Boston note: closing later in the month can change this amount because mortgage payments are paid in arrears.
Homeowner’s insurance (first year)
- What it covers: hazard insurance for the home or, for condos, an HO-6 walls-in policy.
- When paid: commonly at closing.
- Boston note: HO-6 policies often cost less than full dwelling coverage, but confirm master policy details.
Mortgage insurance and program fees
- What it covers: PMI for conventional loans with lower down payments, FHA’s upfront mortgage insurance premium, or the VA funding fee.
- When paid: at closing or financed into the loan depending on the program.
- Boston note: the standard FHA upfront MIP is 1.75% of the loan amount. Conventional PMI structures vary. VA funding fees depend on service history and down payment.
Condo-specific items
Resale or estoppel documents
- What it covers: association documents required for resale and lender review.
- When paid: during escrow.
- Boston note: often a small fixed fee; who pays can vary by association and negotiation.
HOA dues and prorations
- What it covers: your share of dues for the period after closing.
- When paid: at closing via prorations.
- Boston note: sellers usually credit you for any prepaid amounts; you may be responsible for the next period’s dues.
Condo vs single-family costs
- Condos often add small documentary charges and lender project reviews. Turnaround times for condo documents can affect closing timelines.
- Single-family purchases may bring survey needs, septic or sewer inspections, oil tank searches, and higher homeowner’s insurance.
- Neither is always more expensive overall. The mix just differs: condos carry association-related items, while single-family homes can require more property-specific due diligence.
Estimate your total
A simple, quote-driven method keeps you accurate:
- Add fixed third-party fees: appraisal, inspection(s), title search and closing fee, attorney, condo estoppel if applicable.
- Add lender charges: origination or points (loan amount multiplied by the rate or point percentage), underwriting and processing.
- Add title insurance premiums: lender’s policy plus optional owner’s policy.
- Add prepaids and escrow: first-year insurance, prepaid interest, and initial escrow for taxes and insurance.
- Add conditional items: PMI upfront, FHA’s 1.75% upfront MIP if using FHA, or a VA funding fee.
Plan for a total of about 2% to 5% of the purchase price in a financed Boston transaction. If you are paying cash, your total is typically lower because many lender-related costs drop off.
Example ranges to visualize the math
These scenarios are illustrative. Always rely on your lender’s Loan Estimate and your title/closing quote for precise numbers.
Boston condo at $600,000 with 20% down (loan of $480,000)
- Fixed third-party fees: roughly $2,000 to $5,000
- Lender charges and processing: about $1,500 to $5,000, or up to 1% of the loan if points are chosen
- Title insurance: typically a several-thousand-dollar item depending on underwriter and coverage
- Prepaids and escrow: about $4,000 to $10,000 depending on taxes, insurance, and timing
- Estimated buyer cash to close for costs (excluding down payment): about $10,000 to $30,000, or approximately 1.7% to 5% of price
Boston single-family at $900,000 with 10% down (loan of $810,000)
- Fixed fees: often higher for surveys or specialty inspections, about $3,000 to $8,000
- Lender charges and points: processing of $1,000 to $3,000 plus 0% to 1% of the loan if you buy points
- Title insurance and recording: larger premium due to price, often several thousand dollars
- Prepaids and escrow: larger taxes and insurance can push initial deposits to $6,000 to $15,000
- Estimated buyer cash to close for costs (excluding down payment): about $20,000 to $50,000, or roughly 2.2% to 5.5% of price
Local logistics to know
- Suffolk County recording: recording fees are fixed per document and page. Your closing team will confirm exact amounts from the Suffolk County Registry of Deeds.
- Attorney closings: Massachusetts often uses attorneys to close. Expect an attorney fee and confirm what services are included.
- Tax proration: Boston’s property taxes are prorated based on the billing cycle and your closing date. This can change your final cash to close.
- Condo timelines: ask for association resale documents early. Delays in estoppel or questionnaire responses can push your closing.
- Wire safety: verify wiring instructions by phone using trusted, known numbers. Do not rely on email alone. Boston buyers have been targeted by wire fraud; use same-day confirmations.
- Timing choices: a late-month closing can affect prepaid interest. The time of year can change how many months of taxes and insurance your lender collects for escrow.
Quick bring-to-close checklist
Use this simple list to organize your cash and documents:
- Down payment funds.
- Closing costs for third parties: appraisal, inspection(s), title search and closing fee, attorney, recording.
- Lender charges: origination or points, underwriting and processing, credit report.
- Title insurance: lender’s policy and, if you choose, an owner’s policy.
- Prepaids and escrow: first-year homeowner’s insurance, prepaid interest, and initial deposits for taxes and insurance.
- Program-related items: PMI upfront, FHA’s 1.75% upfront MIP, or a VA funding fee when applicable.
- Condo-specific: association resale documents, any lender condo review fees, and dues proration.
- Secure wire plan: verified instructions by phone and a same-day confirmation call.
Ready to see your numbers line by line for a specific Boston property? Reach out for local guidance, smart negotiation, and a clear path to the closing table with Julie Tsakirgis.
FAQs
Boston buyer closing costs: How much beyond my down payment should I budget?
- Plan for about 2% to 5% of the purchase price in closing costs if you are financing, plus prepaids and initial escrow deposits driven by timing.
Boston closings: Who typically pays the owner’s title insurance policy?
- Practice varies by market and negotiation; confirm with your attorney or title company and set it clearly in your purchase contract.
Boston condos: Do condos cost more to close than single-family homes?
- Not always; condos add association document fees and potential lender project reviews, while single-family homes can require surveys and more specialty inspections.
Boston buyers: Can I ask the seller to help with closing costs?
- Yes; seller concessions are negotiable, but loan programs cap how much you can receive, so confirm limits with your lender for your specific loan type.
Boston closings: When will I get my final cash-to-close figure?
- Your lender must issue a Closing Disclosure at least three business days before closing, and the settlement agent will provide a final statement showing all debits and credits.
Boston closing funds: How do I protect myself from wire fraud?
- Always verify wire instructions by calling known phone numbers for your lender or settlement agent, and never rely on emailed instructions without confirmation.
