Purchasing a new home is a very exciting process. However, what happens at the closing table – while it ultimately leads to the seller handing over the keys – can be downright stressful. What’s more, if you are not prepared, you may find that you are facing closing costs that you were neither expecting nor financially ready for. While you should always review all closing costs with a professional prior to closing day, here is what you can usually expect to pay when closing on real estate in Boston:
In Massachusetts, you are required to be represented by a closing attorney during the closing process – hiring an attorney is not optional. Your attorney will guide you through the purchase and sale agreement, review your closing documents, and otherwise make sure everything’s in order. In Boston, closing lawyers can cost between $500 to $2,000 to hire depending upon the specific services performed.
Title insurance costs are calculated based on the cost of the property you are buying, but is typically between $3-$4 per every $1,000 of home. For example, if you are buying a $400,000 home, title insurance could cost between $1,200 and $1,600.
While an appraisal happens well before closing, you probably won’t pay for it until you show up at the closing table. A property appraisal is the process of determining how much the home is actually worth, and usually affects whether or not the bank will issue you a loan (if the home appraises for less than you are offering to pay, your loan may be denied). Property appraisals usually cost between $400 and $600.
You need to file a number of important records related to the purchase of your Boston home with the county clerk’s office, including the new deed. To do so, you will need to pay a filing fee. The fee you will pay is dependent upon the document. For example, the cost of filing a new deed is $125, whereas the cost of filing a mortgage is $175.
Other fees that you may need to pay include title fees, flood certificate fees, credit report fees, lender fees, processing fees, and survey fees.
Meet with Our Lawyers to Discuss Your Boston Closing Today
Our experienced Boston closing attorneys are highly experienced in real estate law and the closing process, and are ready to provide you with the competent legal advice you are looking for. To schedule your consultation with our legal team and learn more about closing on a home in Boston, call us directly at 617-723-2800. You can also request a free consultation by filling out the form on our website with your name, contact information, and a brief message with any questions that you have.