Buying a Cambridge condo is exciting, but the final number you bring to closing can feel unclear. You are not alone if you are asking what counts as closing costs, how much to budget, and what is unique about Cambridge and Middlesex County. In this guide, you will learn the typical range, every common line item, local steps that can affect timing, and smart ways to manage or reduce what you pay. Let’s dive in.
What closing costs include
Closing costs are one-time fees and prepaids you pay at the closing table. They are separate from your down payment and from ongoing expenses like your mortgage, property taxes, and monthly condo fees. Your exact costs appear on your Loan Estimate early in the process and on your final Closing Disclosure before closing.
Common categories include lender charges, title and settlement services, government and recording fees, prepaids for taxes and insurance, condo association items, and professional fees.
How much to budget
A practical rule of thumb is to plan for roughly 2% to 5% of the purchase price in closing costs, not including your down payment. Where you land in that range depends on your loan type, the size of any lender credit or seller concession, and local fees tied to your specific condo and closing date. Your lender’s Loan Estimate and your final Closing Disclosure show the actual figures for your transaction.
Typical buyer line items
Lender and loan fees
- Origination fee or points: often 0% to 1% of the loan amount, depending on the program.
- Optional discount points: 0% to 3% of the loan amount if you choose to buy down your rate.
- Underwriting, processing, and application: often $400 to $1,200 total.
- Credit report: about $25 to $50.
- Appraisal: commonly $300 to $800 in the Boston area, higher for complex properties.
- Flood determination, tax service, and PMI setup (if applicable): usually $25 to $250 each.
Title and closing services
- Lender’s title insurance policy: required if you finance; the cost depends on the loan amount.
- Owner’s title insurance policy: optional but commonly purchased; one-time premium based on the purchase price.
- Title search, examination, and settlement: several hundred dollars to $1,000+ based on complexity.
Government and recording fees
- Recording fees for the deed and mortgage at the Middlesex County Registry of Deeds: typically modest, listed as discrete line items on your Closing Disclosure.
- Transfer or excise taxes: responsibility can vary by state and local custom; confirm what your contract specifies for Massachusetts.
Prepaids and escrows
- Prepaid property taxes: prorated based on your closing date and Cambridge’s tax schedule; may include an initial escrow deposit.
- Homeowner’s insurance: first year premium or initial deposit collected near closing.
- Escrow account setup: often 2 to 6 months of taxes and insurance, depending on lender rules.
Condo-specific costs
- Resale certificate or estoppel letter: the association verifies dues, assessments, and rules; often $150 to $400, sometimes higher.
- Association transfer fee: charged by some associations when ownership changes; who pays is negotiated.
- Move-in or elevator deposit: sometimes refundable, set by the association.
- Any reserve study or document preparation fees if separately billed.
Professional services
- Real estate attorney: Massachusetts closings commonly involve attorneys; typical buyer fees range from $500 to $1,500+ depending on complexity.
- Home inspection: usually $300 to $700 for condos, plus any specialty inspections you choose.
Miscellaneous
- Wire and courier fees, overnight checks, and other small administrative costs that add up.
Cambridge and Middlesex specifics
- Recording and registry fees: The Middlesex County Registry of Deeds sets recording charges for deeds and mortgages. Expect them to appear as individual line items on your Closing Disclosure.
- Property tax proration: Cambridge property taxes are prorated at closing. Your reimbursement to the seller and your initial escrow deposit depend on the city’s current billing periods and your exact closing date.
- Estoppel timing: Cambridge associations often require an estoppel letter or resale certificate before closing. Turnaround can take a few days to several weeks, so request early to avoid delays.
- Special assessments: Associations may impose assessments beyond regular dues. Your lender and title team will check for outstanding items, but you should request written confirmation during due diligence.
- Local practice on representation: In Massachusetts, both buyers and sellers commonly have attorneys. Confirm who pays what in your Purchase and Sale agreement.
- Municipal requirements: Certain certificates or compliance checks can affect timelines, including smoke detectors and lead paint disclosures for older buildings. Ask early so you can plan.
Timeline and key documents
- Loan Estimate: Within three business days of loan application. It outlines your estimated loan charges and closing costs.
- Purchase and Sale Agreement: Sets who pays which fees and any credits you negotiated.
- Resale documents or estoppel: Requested shortly after you go under contract. Turn times can impact your closing date.
- Closing Disclosure: Delivered at least three business days before closing for financed purchases. Review it line by line to confirm cash to close and all fees.
- Title commitment and condo certifications: Reviewed during escrow and used to clear title and verify association standing.
Tip: Compare your Loan Estimate to your Closing Disclosure and ask your lender and attorney to explain any large changes or unexpected items.
How payment works and what is negotiable
Most costs are paid at the closing table and summarized as your cash to close. Some items are prorated, such as property taxes. Others can be shifted through negotiation, including seller credits or coverage of certain association fees, subject to your lender’s rules. If your lender offers a credit, it can offset some costs. Certain fees may be shoppable, so ask early in the process.
Strategies to lower or manage costs
- Get multiple mortgage quotes to compare rates, points, and lender fees.
- Ask for seller credits toward closing costs, within lender and program limits.
- Shop title and closing services where permitted and understand the difference between lender’s and owner’s title policies.
- Consider the tradeoff of financing some costs through points or credits. A lower rate today may require more cash up front.
- Use first-time buyer programs if you qualify. Some allow seller concessions or provide grants for closing costs.
- Avoid rush fees by ordering your condo resale documents and insurance early.
Condo insurance and underwriting tips
Review the association’s master insurance policy to understand what it covers. Most buyers also carry an HO-6 policy that covers interior finishes, personal property, and liability. Lenders may review the building’s owner-occupancy ratio, budget, reserves, and any pending litigation or assessments. Ask for the most recent budget and reserve information so you can evaluate affordability and potential future costs.
Quick prep checklist
- Review your Loan Estimate and identify any shoppable services.
- Confirm your condo’s resale certificate fee, transfer fee, and turnaround.
- Get your HO-6 insurance quote early and verify the master policy coverage.
- Ask your attorney about recording fees, tax proration, and any municipal certificates.
- Line up funds for cash to close, including a plan for wire timing and verification.
- Calendar the Closing Disclosure review period to prevent last-minute delays.
Ready to talk costs?
If you want a clear, line-by-line plan for your Cambridge condo purchase, our team can help you map the numbers, coordinate documents, and keep your timeline on track. Reach out to Moving Greater Boston to get focused guidance and a smooth path to the closing table.
FAQs
How much are closing costs for a Cambridge condo?
- Plan for about 2% to 5% of the purchase price, excluding your down payment, with exact figures shown on your Loan Estimate and final Closing Disclosure.
Do Cambridge buyers pay the real estate commission?
- It is common for the seller to pay broker commissions from sale proceeds, but always check your contract and local custom for your specific deal.
Who pays the condo estoppel or transfer fee in Cambridge?
- It depends on association rules and negotiation; your Purchase and Sale agreement should specify whether the buyer or seller pays these fees.
Do I need an attorney to buy a condo in Massachusetts?
- Attorney involvement is common for both sides in Massachusetts closings; most buyers hire an attorney to review documents and represent them at closing.
What are prepaid property taxes at closing?
- Taxes are prorated based on your closing date; you may reimburse the seller for their prepaid portion and fund an initial escrow deposit for future tax bills.
How do I verify Middlesex County recording fees?
- Check the official fee schedule with the Middlesex County Registry of Deeds or ask your closing attorney to confirm the current charges for your documents.
What if the condo has a pending special assessment?
- Lenders usually require disclosure and may need it resolved; get written details in the resale documents and discuss with your lender and attorney early.
