Buying in Boston and wondering what it really costs to close on a home? The down payment is only part of your cash to close, and the rest can surprise first-time and repeat buyers alike. You want a clear, local breakdown so you can plan with confidence and avoid last‑minute stress. In this guide, you’ll learn what Boston buyers typically pay, which fees you can negotiate, and how to estimate your cash to close with real local examples. Let’s dive in.
What Boston buyers pay at closing
Buyer closing costs fall into a few buckets: lender fees, third‑party services like appraisal and inspections, title and recording fees, attorney fees, prepaids and escrow deposits, prorations for taxes or HOA dues, and optional items like owner’s title insurance or surveys. Some items are fixed by law, others are shop‑able. Your exact total depends on your purchase price, loan type, and timing.
Typical cost range in Boston
Plan for roughly 2% to 5% of the purchase price in buyer closing costs, not including your down payment. In higher‑cost markets like Boston, the upper end is more common, especially when you include larger escrow deposits and optional protections like owner’s title insurance. Exact amounts vary by loan program and local fees, so use these as planning ranges, then confirm with written estimates.
Line by line: what’s in your total
Lender fees and rate choices
- Origination, underwriting, and processing: often several hundred to a few thousand dollars depending on lender pricing.
- Discount points: each point equals 1% of your loan amount and buys a lower interest rate. This is optional.
- Prepaid interest: interest from your closing date to your first payment, usually several days to one month.
Appraisal, credit, and verifications
- Appraisal: typically about $350 to $900 in the Boston area, depending on property type and complexity.
- Credit report and other verifications: generally $10 to $200 total.
Inspections and surveys
- General home inspection: usually $300 to $800 based on size and age of the home.
- Specialty inspections, if needed: $75 to $1,000 depending on the type, such as sewer, chimney, pest, or structural.
- Survey: $400 to $1,500 or more when required or requested. Many condo purchases do not need a new survey.
Title search, insurance, and settlement
- Title search and settlement: several hundred to over $1,000 for research, title examination, and closing coordination.
- Lender’s title insurance: required when you have a mortgage, one‑time premium based on loan amount.
- Owner’s title insurance: optional but widely recommended, one‑time premium based on purchase price. Who pays can be negotiated in your offer.
- Recording and filing: government‑set fees for recording the deed and mortgage at the Suffolk County Registry of Deeds. These are non‑negotiable.
Attorney fees in Massachusetts
Massachusetts closings commonly involve attorneys who coordinate closing documents, title review, and guidance. Buyer attorney fees are typically several hundred to a few thousand dollars depending on complexity. Most buyers hire their own attorney and should request a written fee estimate early.
Prepaids, escrows, and prorations
- Homeowners insurance: lenders typically require the first year’s premium at or before closing.
- Property taxes: prorated between buyer and seller. If your loan has an escrow account, lenders often collect 2 to 6 months of taxes and insurance at closing to fund it.
- HOA or condo fees: prorated dues, plus possible move‑in or account setup fees.
- Utilities or municipal charges: certain items like water or sewer may be prorated or require transfer fees.
Optional or situational items
- Owner’s title insurance: protects your equity. Optional for buyers, required for lenders only.
- Reserves: some loan programs require additional reserves beyond the escrow account.
What you can negotiate in Massachusetts
Shop‑able costs include lender rates and fees, discount points, title and settlement fees, owner’s title insurance, attorney fees, and inspection providers. Ask for written quotes so you can compare.
Non‑negotiable items include county and state recording fees and any government stamps or taxes. Loan program rules also limit how much a seller can contribute to your costs, so confirm allowable seller concessions with your lender before you write an offer.
Required disclosures and timelines
Your lender must send a Loan Estimate within three business days after you apply. It outlines projected closing costs, monthly payment, and cash to close. You will receive a final Closing Disclosure at least three business days before closing. To understand these forms and your timelines, review the Consumer Financial Protection Bureau guides for the Loan Estimate and the Closing Disclosure.
Estimate your cash to close
Here is a simple method to plan your budget:
- Start with your purchase price and down payment percent. Compute the down payment.
- Estimate buyer closing costs as a percent of price. For Boston, use 2% for economical, 3% for typical, and 4% to 6% for comprehensive scenarios that include larger escrow deposits and optional protections.
- Add prepaids and initial escrow deposits separately, since these depend on your closing date, property taxes, and insurance.
- Subtract any seller concessions or lender credits.
- Request a Loan Estimate to refine each line item and reconcile to real quotes.
Boston examples: $700,000 purchase
Economical scenario (20% down, minimal escrows):
- Down payment: $140,000
- Closing costs at 2%: $14,000
- Prepaids and initial escrows: $4,000 to $8,000
- Estimated cash to close: $158,000 to $162,000
Typical scenario (20% down):
- Down payment: $140,000
- Closing costs at 3%: $21,000
- Prepaids and initial escrows: $4,000 to $12,000
- Estimated cash to close: $165,000 to $173,000
Lower down payment scenario (5% down) with larger escrows:
- Down payment: $35,000
- Closing costs at 4%: $28,000
- Prepaids and initial escrows: $6,000 to $15,000
- Estimated cash to close: $69,000 to $78,000
These ranges are illustrative. Your numbers depend on your loan program, insurance, taxes, and exact recording or title charges.
How timing affects your total
Closing later in the month can reduce prepaid interest because you pay interest only from your closing date to the end of that month. Property tax cycles and insurance renewals can change how much your lender collects for the escrow account. Ask your lender to model different closing dates if you are flexible on timing.
Smart ways to trim costs
- Compare at least two lenders and ask about both rates and total fees, including points, credits, and underwriting costs.
- Request quotes from multiple title and settlement providers and ask for owner’s and lender’s title insurance premiums in writing.
- Get attorney fee estimates early and understand what is included.
- Consider seller concessions during offer negotiations, then confirm that your loan program allows the requested amount.
- Budget for inspections up front and use findings to negotiate repairs or credits where appropriate.
- Keep a small contingency, such as 5% to 10% of estimated closing costs, for surprises.
What to gather before closing
- Government‑issued photo ID
- Recent bank statements and proof of down payment funds
- Pay stubs and prior tax returns if requested by your lender
- Homeowners insurance quote or binder
- Contact details for your attorney and settlement agent/title company
Where to verify your numbers
- Your Loan Estimate and Closing Disclosure are the authoritative sources for your transaction. Use the CFPB guides for the Loan Estimate and the Closing Disclosure to understand each line item.
- For title insurance premiums and settlement fees, request written quotes from local title companies.
- For recording fees and deed filing charges, confirm with the Suffolk County Registry of Deeds or your attorney.
Ready for a local, line‑by‑line estimate for your Boston purchase and a clear plan to negotiate costs where it makes sense? Schedule a complimentary strategy consultation with the Livingston Group to get tailored numbers and a step‑by‑step closing path.
FAQs
Who pays for owner’s title insurance in Boston?
- Owner’s title insurance is optional and the buyer often pays, but it can be negotiated in your offer, subject to contract terms and lender rules.
Are attorney fees required for Massachusetts homebuyers?
- There is no legal requirement, but attorney representation at closing is common and strongly recommended, and buyers typically hire their own attorney.
Can a seller cover my closing costs in Boston?
- Yes, seller concessions are possible, but your loan program sets limits on how much the seller can contribute, so confirm with your lender before you write your offer.
When will I see my final closing numbers?
- You should receive a Closing Disclosure at least three business days before closing, and your earlier Loan Estimate provides projected costs for planning.
How are Boston property taxes handled at closing?
- Taxes are prorated between buyer and seller based on the closing date, and your lender may collect 2 to 6 months of taxes and insurance to fund your escrow account.
How much should I budget for inspections in Boston?
- General inspections commonly run $300 to $800, and specialty inspections range from about $75 to $1,000 depending on the type and property.
Do Boston condos need a survey?
- Many condo purchases do not require a new survey, but your lender, attorney, or title company will confirm what is needed for your specific unit.
