Buying in Somerville and wondering how much cash you will actually need to close? You are not alone. Closing costs can feel opaque the first time around, especially when you are juggling loan terms, condo documents, and a moving timeline. In this guide, you will learn what buyer closing costs in Massachusetts include, what typical ranges look like, and how loan and property type can change the total. You will also get a simple checklist to estimate your costs with confidence. Let’s dive in.
What closing costs include in MA
As a planning rule, expect buyer closing costs to total about 2%–5% of the purchase price. That range covers lender fees, third‑party services, title and recording charges, and prepaids like insurance and taxes. It does not include your down payment.
Costs that are often separate from that 2%–5% estimate include home inspections, attorney fees, moving costs, and optional owner’s title insurance. Condo buyers may also see association document fees or move‑in charges. Your exact cash‑to‑close shows up on the lender’s Loan Estimate and Closing Disclosure.
If you have not seen those forms before, review how they work in the Consumer Financial Protection Bureau’s explanations of the Loan Estimate and the Closing Disclosure.
Somerville examples to frame a budget
These examples are for planning only. Exact figures will come from your lender and closing attorney.
- On a $700,000 purchase: 2% is $14,000 and 4% is $28,000 for closing costs.
- On a $1,000,000 purchase: 2%–5% is $20,000–$50,000 for closing costs.
These ranges reflect typical Massachusetts practice when buyers pay standard lender and third‑party fees. The mix of condo versus single‑family, loan type, and timing of your closing can move the needle up or down.
Line‑by‑line: what you may see
Lender and loan fees
- Origination and application fees. Some lenders charge a flat fee; others may base it on a percentage of the loan. Your Loan Estimate lists the exact amount.
- Underwriting, processing, credit report, and document prep. Often several hundred dollars in total.
- Rate buy‑down or discount points. Optional; each point is 1% of the loan amount and buys a lower rate per lender pricing.
- Appraisal. Typically $400–$900, with higher fees possible for larger, complex, or multi‑family properties common in urban markets like Somerville.
- Program‑specific costs.
- FHA loans include an upfront mortgage insurance premium historically around 1.75% of the loan. This may be financed or paid at closing.
- VA loans include a funding fee that varies by down payment and service history. This may also be financed or paid at closing.
- Conventional loans with less than 20% down usually require private mortgage insurance.
- USDA loans include a guarantee fee.
- Prepaid interest. Based on your closing date and first payment due date. Closing mid‑month means you prepay interest for the remaining days of that month.
- Escrows. Lenders commonly collect 1–2 months of property taxes and a portion of your homeowner’s insurance to seed your escrow account.
Title, settlement, and recording
- Title search and settlement fee. Covers title research, a title binder, and closing coordination. Often several hundred dollars to around $1,000 depending on complexity.
- Lender’s title insurance. Required by most lenders; priced from filed insurer rates based on loan amount.
- Owner’s title insurance. Optional but commonly recommended; a one‑time premium based on purchase price.
- Recording fees. Paid to the Middlesex County Registry of Deeds to record the deed and mortgage. Amounts are usually in the low hundreds and depend on document type and page count.
- Transfer or excise taxes. Massachusetts does not impose one uniform statewide transfer tax the same way some states do. Verify current county and municipal requirements with your closing attorney.
Inspections and property reports
- Home inspection. Often $300–$700 for a single‑family, with higher fees for larger or more complex properties.
- Pest or termite inspections. Required by some lenders or requested based on property type.
- Survey. Sometimes requested by the lender; cost varies with lot size and complexity.
- Condo documents. Associations may charge a resale or estoppel certificate fee. These commonly range from $100–$400 but can be higher. Responsibility to pay may be negotiated in your offer.
Prepaids and escrows at closing
- Homeowner’s insurance. Your lender will require proof of coverage and typically collects the first year’s premium at or before closing.
- Property taxes. Massachusetts municipalities set billing schedules. At closing you may reimburse the seller for prepaid taxes and the lender may collect 2–3 months of taxes for escrow.
- HOA or condo fees. Expect prorations to split prepaid dues with the seller. Lenders may also collect a few months of dues in escrow based on program rules.
- Utilities and municipal charges. Any betterments, sewer or water charges, or municipal liens uncovered during title work must be addressed before closing.
Attorney fees in Massachusetts
Massachusetts closings commonly involve attorneys for both buyer and seller. Buyer attorney fees are often billed separately and may not appear on the Closing Disclosure. Plan for several hundred to a few thousand dollars depending on property type and complexity, and confirm whether your attorney will bill outside closing.
Condos vs single‑family in Somerville
Condo‑specific costs and checks
- Resale or estoppel certificate. Associations often charge for required documents and financial statements provided to the buyer and lender. Confirm the fee and who pays.
- Project review. Some lenders charge a fee to review condo eligibility and budget reserves.
- Insurance. The master policy covers the building and common areas. You will typically buy an HO‑6 policy for your unit, with the first year’s premium collected at closing.
- Reserves and assessments. Lenders review condo reserve funding and any special assessments. While these do not change your closing costs directly, they can affect approval and monthly carrying costs.
Single‑family considerations
- Surveys. If requested, a full lot survey can add cost.
- Property‑specific inspections. Older homes may warrant additional inspections beyond the general home inspection.
- Septic systems. For properties on septic, inspections and compliance can impact the timeline and costs.
How your loan type changes totals
- Conventional. Expect standard lender and third‑party fees, plus private mortgage insurance if you put less than 20% down. Seller credits are allowed, with limits that vary by down payment and program.
- FHA. Includes an upfront mortgage insurance premium that may be financed. FHA allows seller credits within stated limits; your lender will confirm current rules.
- VA. Includes a funding fee that may be financed or paid at closing. VA rules define what fees the buyer can pay, what sellers can cover, and the cap on concessions.
- USDA. Includes a guarantee fee and program‑specific eligibility checks.
- Jumbo. Appraisal and underwriting requirements may be more extensive, and lenders may ask for larger escrow balances.
Always confirm current program rules with your loan officer. They will detail exactly what you can pay, what the seller can cover, and how credits apply on your Loan Estimate and Closing Disclosure.
Somerville and Middlesex details to verify
- Registry of Deeds recording fees. Ask your closing attorney for the current Middlesex County schedule for deeds, mortgages, and certified copies.
- City tax timing and proration. Confirm Somerville’s property tax due dates with the Treasurer or Collector’s office so you can plan for reimbursements and escrow deposits.
- Condo move and elevator fees. Many buildings require elevator reservations and charge move‑in or move‑out fees. Get this from the property manager early.
- Municipal betterments or liens. Title work should surface any water, sewer, or other local assessments. Verify resolution timing and who will pay.
Smart steps to estimate and avoid surprises
- Get pre‑approved and request a Loan Estimate early. Lenders must provide a Loan Estimate within three business days of application. Use the “Estimated Closing Costs” section as your baseline.
- Ask for line‑item numbers from local pros. Have your lender quote lender fees, escrows, and any program fees. Ask a local title company or settlement attorney for title insurance quotes and estimated recording fees specific to Middlesex County.
- For condos, confirm association document fees. Request the resale or estoppel certificate fee and timing, and ask about any known or pending assessments.
- Verify tax proration with the city. Contact Somerville’s Treasurer/Collector to confirm how taxes are prorated at closing and whether any outstanding municipal charges exist.
- Build a buffer. Plan a 2%–5% cushion in your cash‑to‑close for prorations and final adjustments.
- Explore assistance programs. Massachusetts buyers can review state‑sponsored programs and down payment assistance at MassHousing. Some options reduce cash‑to‑close and require early application.
- Confirm attorney fees and billing. Ask your attorney for a written estimate and whether they will bill through the closing statement or separately.
What you can negotiate
Seller credits toward closing costs are common and can meaningfully reduce your cash‑to‑close, subject to loan program limits. You can also negotiate who pays certain items like owner’s title insurance or condo document fees, depending on local practice and market conditions. Your offer strategy should reflect both your budget and your loan program so credits are structured in a way the lender will approve.
A local team can help you weigh price versus credits, time your closing date to lower prepaid interest, and anticipate condo‑specific fees before you commit. The goal is a clear, complete picture before you sign.
Final thoughts
Closing costs do not have to be a mystery. If you budget 2%–5% of the purchase price, request line‑item quotes early, and build in a small buffer, you will be well prepared. Your lender’s Loan Estimate and Closing Disclosure will anchor the numbers, and your attorney and title team will confirm recording fees and condo document costs.
If you are planning a purchase in Somerville or nearby Middlesex County, connect with the local guidance you need. Reach out to the Masterman Elek Group to review your goals, loan type, and property preferences, and to build a clear closing‑cost plan that supports a confident offer.
FAQs
What are typical buyer closing costs in Massachusetts?
- Most buyers should plan for 2%–5% of the purchase price for closing costs, excluding the down payment, with exact amounts shown on your Loan Estimate and Closing Disclosure.
Do Somerville condo buyers pay for resale or estoppel certificates?
- Associations often charge a document fee that typically ranges from $100–$400, and who pays can be negotiated in your offer.
Who pays recording fees in Middlesex County?
- Recording fees are county charges that are usually negotiated in the purchase contract, and your closing attorney will itemize the exact amounts.
Is owner’s title insurance required in Massachusetts?
- No, owner’s title insurance is optional, while lender’s title insurance is typically required by the lender.
Can a Somerville seller pay my closing costs?
- Yes, seller credits are common but limited by loan program rules, so your lender must approve the credit amount and how it is applied.
Are attorney fees included on Massachusetts closing statements?
- Sometimes, but many buyer attorneys bill separately in Massachusetts, so confirm with your attorney whether their fee will appear on the closing statement or be invoiced outside closing.
