Buying a condo in Cambridge is exciting, but the line items on your closing statement can feel like a foreign language. You want to know what you’ll pay, when it’s due, and where you can save without risking the deal. In this guide, you’ll learn the typical closing-cost range for Cambridge condos, the common fees you’ll see, local checkpoints, and smart ways to lower your out-of-pocket cash. Let’s dive in.
What closing costs include
Closing costs are the fees you pay to finalize your purchase, separate from your down payment. They typically cover:
- Lender charges and origination fees
- Third-party services like appraisal, credit report, and title search
- Title insurance
- Recording and registry fees
- Attorney and settlement fees
- Condo-specific items like resale certificates and document review
- Prepaid items and escrows for taxes, HOA dues, insurance, and interest
For a plain-English overview, review the CFPB’s closing costs guidance. The CFPB also publishes what to expect on your Loan Estimate and your Closing Disclosure, the two documents that spell out your fees before you sign.
How much to budget
A good rule of thumb is 2-5% of the purchase price for buyer closing costs. Actual amounts vary by loan type, price point, and what you negotiate. Always compare the numbers on your Loan Estimates and confirm the final totals on your Closing Disclosure.
Here are simple examples to set expectations:
- $500,000 condo: about $10,000 at 2%
- $800,000 condo: about $16,000 at 2% to $32,000 at 4%
- $1,000,000 condo: about $20,000 to $50,000 at 2-5%
Line-item breakdown
Earnest money deposit
- What it is: Your good-faith deposit held in escrow after your offer is accepted.
- Typical in Cambridge: Often 1-5% of the purchase price. Stronger offers sometimes show larger deposits.
- Timing: Paid shortly after offer acceptance and applied to your down payment at closing. Refundability depends on your Purchase and Sale contingencies.
Lender fees and mortgage costs
- Origination and points: Your lender may charge a flat fee or points. Discount points lower your rate for an upfront cost.
- Appraisal: Commonly $400-$1,000 for condos, with Cambridge complexity often on the higher side.
- Other small fees: Credit report, flood certification, tax service, document prep, and the lender’s attorney or processing.
- Who pays: Usually the buyer, unless offset by a negotiated credit.
Title work and title insurance
- Title search and settlement: Fees for researching the title and handling your closing.
- Lender’s title policy: Usually required by the lender and typically paid by the buyer.
- Owner’s title policy: Optional but recommended to protect your ownership. Who pays can be negotiated.
- Cost: Premiums scale with price. Get a quote early from your title company.
Recording and registry fees
- What it covers: Recording your deed and mortgage with the county.
- Where to verify: Check the Middlesex County Registry of Deeds for current recording fees and any required forms.
Condo-specific fees
- Resale or estoppel certificate: The association provides financial and rules information. Fees often range from under $100 to several hundred dollars.
- Condo document review: Your lender or attorney may charge to review bylaws, financials, and rules.
- HOA dues and assessments: Prorated at closing. Outstanding assessments are addressed in your closing statement.
- Who pays: Often the seller provides the resale certificate, but fees and timing are negotiable in your offer.
Attorney and closing agent
- Massachusetts norm: Buyers and sellers commonly retain attorneys, which is advisable for condo transactions.
- Typical fees: Several hundred to a few thousand dollars, depending on complexity. Get quotes.
- Who pays: You pay your attorney; settlement and escrow fees are assigned per contract.
Prorations, escrows, and prepaids
- Property taxes: Prorated based on the closing date and Cambridge’s tax schedule.
- Homeowner’s insurance: Lenders often require you to pay the first year at closing or fund an escrow.
- Interest: You usually prepay daily interest from closing to month-end.
- HOA dues: Prorated and, in some cases, an escrow may be set up.
Inspections and surveys
- Home inspection: Commonly $300-$600 for condos.
- Specialty inspections: Pest or sewer scopes are optional.
- Surveys: Usually not required for condos unless your lender requests one.
Cambridge and Middlesex checkpoints
- Attorney usage: It is standard in Massachusetts to have attorneys represent buyers and sellers. Budget accordingly and work with counsel who regularly handles Cambridge condos.
- Title insurance customs: Many Massachusetts buyers purchase an owner’s policy. Confirm who pays during negotiations.
- Resale certificate timing: Some associations need weeks to prepare the package. Ask for the fee and turnaround as soon as you go under contract. For broader context on resale disclosures, see the Community Associations Institute guidance on resale disclosures.
- Recording fees and forms: Verify current fees and procedures with the Middlesex County Registry of Deeds.
- Property tax schedule: Check the City of Cambridge real estate tax page for due dates that affect prorations.
Timeline and deposits
- Offer to closing: 30-60 days is common with financing. All-cash can be faster.
- Deposit timing: Your earnest money is usually due within a few business days after acceptance, or as stated in your contract.
- Contingencies: Inspection and financing timelines control when your deposit is refundable. Your attorney will review these deadlines.
- Competitive offers: In busier Cambridge submarkets, buyers sometimes offer larger deposits and shorter timelines, which raises near-term cash needs and risk.
Ways to reduce your closing costs
- Ask for seller credits: Negotiate a credit to offset closing costs or specific fees like the owner’s title policy or resale certificate.
- Compare lenders: Shop at least two lenders and weigh origination fees and points against long-term interest savings. Use the Loan Estimate to compare apples to apples.
- Shop title and insurance: Title and homeowner’s insurance can vary. Get quotes early.
- Finance allowable fees: Some costs can be rolled into your loan depending on program and underwriting.
- Weigh inspection tradeoffs: Repair credits can keep your deal on track, but understand the risks before skipping or limiting inspections.
- Negotiate owner’s title: You can negotiate who pays. If you decline the policy, you save upfront but lose protection. Discuss with your attorney.
Quick preparation checklist
- Request Loan Estimates from at least two lenders and compare.
- Ask a title company for a preliminary quote and sample closing statement.
- Confirm recording fees with the Middlesex County Registry of Deeds.
- Contact the condo association for the resale certificate fee and turnaround.
- Review Cambridge property tax due dates to plan for prorations and escrows.
- Retain a Massachusetts real estate attorney early to review condo documents and deadlines.
Ready to move forward?
If you want a clear, step-by-step path from offer to keys, let’s build your Cambridge condo plan together. From lender comparisons to association document review and closing-cost strategy, you will have data, options, and a calm process. Reach out to Mckenzie Howarth to get started.
FAQs
How much are buyer closing costs for a Cambridge condo?
- Most buyers budget 2-5% of the purchase price, with actual totals shaped by loan type, points, title choices, and negotiated credits.
What fees are unique to Cambridge condominiums?
- You may see a resale or estoppel certificate fee from the association, condo document review costs, and prorated HOA dues or assessments at closing.
Who typically pays for title insurance in Massachusetts condo deals?
- Lenders usually require a lender’s policy paid by the buyer, while the owner’s policy is optional and negotiable in many Massachusetts transactions.
When is the earnest money deposit due in Cambridge?
- It is commonly due within a few business days after offer acceptance or as stated in your contract, and it is credited toward your down payment at closing.
How can I verify recording fees for my Cambridge closing?
Where can I learn about my final closing numbers before I sign?
- Your lender must provide a Closing Disclosure at least three days before closing, detailing your final costs and cash to close.
