Preparing for Closing Costs

There are many costs associated with buying or selling a home. It is important to factor in closing costs to your budget because it will make you the most prepared for the purchase or sale of a home. Without proper budgeting, these costs may seem overwhelming. However, with proper planning throughout the home sale process, these closing costs should not come as a surprise or be worrisome.

What are potential closing costs?

Closing costs will vary depending on each home sale circumstance. Both buyers and sellers have closing costs. For buyers, closing costs may include homeowners and title insurance and lender fees such as a mortgage application, lenders mortgage insurance and appraisal fees. Additional costs may include a recording fee for your deed and mortgage and attorney fees. This is not an all inclusive list of possible closing costs, and you should consult with your agent which costs are relevant to your situation. 

Sellers have differing closing costs compared to buyers. For sellers, their closing costs may include a recording fee for releasing their mortgage and a transfer tax stamp. In Massachusetts, the tax stamp is typically $4.56 per $1,000 of the sales price. 

So what?

It is important to take note of the additional costs that you may incur throughout the home buying or selling process. Preparing for these costs is the best way to not be taken by surprise at the end of the home sale process. Through performing additional research and consulting with your agent and attorney, you should be able to accurately budget for these additional costs. This will save you from additional stress throughout the home buying or selling process.