The biggest closing cost is fees for the mortgage. When you are pre-approved for your mortgage amount, the lender is required to give you a good-faith estimate of the fees they are charging. That’s why its so important to shop around before you commit to a specific lender — you can save thousands on fees alone.
You need to pay property taxes from the date you finalize your purchase until the end of the year. If the seller has already paid part of this in advance, some of your money will go to them for reimbursement.
In Massachusetts, the title company or an attorney will make sure the closing meets all the standards of the state. You’ll generally pay $2.00 for every $1,000 of purchase plus $250. For a home that’s $378,600, that’s about $1,007.
Its essential to make sure the home is in the condition promised before you close the deal. A home inspection may seem like an expense you’d rather skip, but the cost of being stuck with a “lemon” of a home is much worse. An inspection costs between $400-$800 in Massachusetts.
Title Company Search
The title search ensures that there are no problems with the ownership of the home before you buy it. You don’t want someone else showing up and making a claim on the home you just bought! The title company fees are often part of the lender’s fees.
You’ll need to pay a fee to record the new title and ownership with the county you buy in. These fees vary depending on your location.
This small $20 fee is required to determine if your home is in a flood zone. If it is, you’ll need to purchase flood insurance in addition to having your regular homeowner’s coverage.
There are some additional costs that may be a good idea but not all Massachusetts home buyers do them. They include pest inspections, radon inspections (both air and water), mold inspections, as well as looking for lead paint and inspecting the well water and septic system.