Buyers often ask questions about the costs of buying a home. Below is a list and description of the general costs for Massachusetts home buyers.
|List of items||Description|
|Appraisal Fees||Appraisal fees are approximately $350.00.|
|Lender’s Title Insurance||Costs $2.50 per every $1,000.00 borrowed. It protects a lender’s financial interest in real property against loss due to title defects, liens or other matters.|
|MA Real Estate Property Tax Escrows||3-6 months worth of tax and insurance escrows are typically required by the lender, depending on several variables. This 3-6 months of tax funds are held with the lender who will pay the taxes on your behalf.|
|Homeowner’s Insurance||The lender will require the first year’s insurance premium paid in full prior to closing. Typically the lender will also require 3 months of insurance premiums to be held in escrow, also paid at closing.|
|Lender’s Fees||These can consist of several items and are based upon the buyer’s down payment, credit score, type of loan requested, work history, etc. Lender’s fees could consist of loan points, document preparation, underwriting and processing, etc. They are usually prorated with the loan amount.|
|Title Company or Attorney Closing Costs||Typically between $500 – $800. This fee covers title search and closing document preparation.|
|Deed Recording Fees||$125 – $200.|
|Home Inspection||$350 – $850 depending on several variables such as property type, septic, water, radon, etc.|
The Buyer’s Agent/Agency fee is usually paid by the Seller from the proceeds of the sale. Occasionally, the Buyer is responsible to cover a portion of the Buyer’s Agency fee. Sometimes, this fee can be negotiable and can range from 0.25% to 3% of the purchase price.