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Closing costs for first-time buyers can feel confusing at first. These one-time fees and prepaids are due at settlement—separate from your down payment. Because they cover services like title, recording, and taxes, understanding your closing costs early helps you plan your true cash to close and avoid surprises.
What’s typically included?
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Lender fees: underwriting, origination, and rate-related charges.
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Title & settlement: title search, lender’s title insurance, and settlement/attorney fee.
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Recording & transfer: government recording fees; transfer taxes where applicable.
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Prepaids & escrows: homeowner’s insurance, property taxes, and daily interest collected to set up your escrow account.
Who pays what?
Generally, buyers cover their own lender, title, and escrow items. Meanwhile, sellers pay their obligations—such as transfer tax (where applicable), mortgage discharge fees, and brokerage commissions per the listing agreement. In Massachusetts, closings are attorney-managed; therefore, exact costs can vary by town, loan type, and property.
How much should you expect?
Typically, plan for several percent of the purchase price, depending on your loan and location. However, you can often reduce cash to close with:
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Seller credits negotiated in your offer,
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Lender credits (slightly higher rate, lower upfront costs), and
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Program assistance for eligible first-time buyers (see MassHousing and other options).
What paperwork will you see?
First, your lender issues a Loan Estimate early in the process. Then, a few days before closing, you’ll receive a final Closing Disclosure summarizing all numbers. Consequently, you’ll have time to review line items and ask questions before signing.
https://www.masshousing.com/
Bottom line: Ultimately, clarity here prevents surprises on closing day. With that in mind, I’ll review your estimate line-by-line and suggest strategies to keep cash to close comfortable.
Talk to a Trusted Lender
Want an accurate estimate and options to lower upfront costs? I’ll introduce you to a local lender to review closing costs, credits, and programs—no obligation.
