Boston Closing Costs, Line by Line

Lender charges come first: origination, underwriting, appraisal, and credit reporting. Then the title work, a title examination, lender's title insurance, and optionally an owner's policy, which is worth buying.

Then the legal and recording items: attorney fees, recording fees, and the state's deed excise where applicable. Finally, prepaid items: property taxes, homeowner's insurance, and the escrow cushion your lender requires.

The largest line is the brokerage commission, agreed in the listing contract. After that, the Massachusetts deed excise tax, calculated on the sale price, plus the seller's attorney, the smoke and carbon monoxide certificate, and any payoff or discharge costs on existing loans.

Sellers also typically credit the buyer for taxes and, in a condominium, fees already paid beyond the closing date.

Some lender fees are negotiable, particularly if you have competing loan estimates in hand. Comparing two written estimates side by side is the most reliable way to reduce this line, and it takes an afternoon.

Title and closing services can sometimes be shopped, depending on the lender. Recording fees and excise tax are statutory and are not.

Seller concessions toward buyer closing costs are common in slower conditions and effectively negotiable as part of the price. They are worth raising when a deal is close.

For a buyer, two to three per cent of the purchase price is a reasonable planning assumption for closing costs, excluding the down payment. For a seller, commission plus roughly one per cent covers most of the rest.

Your lender must give you a Loan Estimate within three business days of application, and a Closing Disclosure three business days before closing. Read both. The comparison between them is where errors surface.