When purchasing a home in Boston, there are several common closing costs that homebuyers typically encounter. These costs can vary depending on the specifics of the mortgage and the property being purchased. While some closing costs are non-negotiable, others may be open to negotiation. Let's explore the common closing costs associated with a mortgage in Boston:

1. Loan Origination Fee:

The loan origination fee is charged by the lender for processing the mortgage application. It is typically a percentage of the loan amount, ranging from 0.5% to 1.5%. While this fee is usually non-negotiable, you can compare offers from different lenders to find the most competitive rate.

2. Appraisal Fee:

An appraisal fee is paid to a professional appraiser to assess the value of the property. This fee is necessary to ensure that the property's value aligns with the loan amount. While the appraisal fee is generally non-negotiable, you can request quotes from different appraisers to find the best price.

3. Title Insurance:

Title insurance protects the lender and the buyer against any potential issues with the property's title. The cost of title insurance is typically based on the loan amount. While you cannot negotiate the cost of title insurance, you can shop around for the best deal by comparing quotes from different title insurance providers.

4. Home Inspection Fee:

A home inspection fee is paid to a professional inspector to evaluate the condition of the property. While the home inspection fee is usually paid by the buyer, it can sometimes be negotiated for the seller to cover the cost or split it with the buyer.

5. Attorney Fees:

In Boston, it is common for buyers to hire an attorney to handle the legal aspects of the home purchase. Attorney fees can vary depending on the complexity of the transaction and the attorney's rates. While attorney fees are generally non-negotiable, you can compare rates from different attorneys to find one that fits your budget.

6. Recording Fees:

Recording fees are paid to the local government to record the new mortgage and transfer the property's title. These fees are typically non-negotiable, as they are set by the government.

7. Prepaid Expenses:

Prepaid expenses include costs such as property taxes, homeowners insurance, and prepaid interest. While these costs are not negotiable, you can estimate them in advance and budget accordingly.

It's important to note that while some closing costs can be negotiated, others are set by third-party service providers or government entities. To ensure a smooth negotiation process, it's advisable to work with a knowledgeable real estate agent or mortgage broker who can guide you through the process and help you understand which costs are negotiable.

References:

• Consumer Financial Protection Bureau - Closing Process
• Bankrate - Guide to Mortgage Closing Costs