Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers in Massachusetts, closing costs will come to about $3500 plus lenders title insurance and any pre-paid items such as real estate taxes, insurance and interest. 
There may be closing costs customary or unique to a certain locality, but closing costs are usually made up of the following:
Third Party Fees (The Hard Costs)
- Attorney’s fees (yours and your lender’s if applicable)
- Appraisal
- Credit Report Fee
- Lenders administrative costs
- Recording fees
- Plot Plan or Survey fee
- Title insurance (yours and your lender’s)
- Loan discount points (click to the left to see if points are worth it)
- Any documentation preparation fees
Pre-Paid Items:
- Property taxes (to cover tax period to date)
- Interest (paid from date of closing to the following first of the month)
- First payment to escrow account for future real estate taxes and insurance
- 3 to 4 months of real estate taxes to be held in escrow
- 2 months of homeowners insurance to be held in escrow
- Paid receipt for homeowner’s insurance policy (including fire and flood insurance if applicable)
- First premium of mortgage insurance (if applicable)
Additional Items that No One Tells You About:
- Purchase and Sales Review
- Recorded Homestead Act
- Representation from a real estate attorney other than what the bank provides
- Home Inspection
- One Year of Homeowners Insurance up front
- Owners Title Insurance
- Buying the Oil in the Oil Tank of your new home
For more details regarding these items, please see my blog post: Home Buying Closing Costs: What to Expect
Or for more clarification on closing costs and how you can save your buyers money, feel free to contact me anytime at bill@billnickerson.com
The Mortgage Markets 
