Wondering how much cash you’ll need to close on a home in Arlington? It’s more than your down payment, and the mix of fees can be confusing at first glance. You want a clear number early so there are no surprises on closing day.
This guide breaks down typical buyer closing costs in Massachusetts, why the range is often 2% to 5% of the purchase price, and how Arlington’s local fees and taxes fit in. You’ll also see sample “cash to close” estimates at common price points. Let’s dive in.
What closing costs include
Closing costs are the one-time expenses you pay to secure the loan, transfer the property, and set up tax and insurance reserves. Many items are set by third parties, and exact figures come from your lender and closing attorney.
You will see lender fees, title and recording charges, prepaid interest, property tax and insurance escrows, and inspections. If you are buying a condo, plan for association documents and your first month of dues. Your final costs will appear on your federal Closing Disclosure.
How much in Arlington
In Massachusetts, buyer closing costs commonly total 2% to 5% of the purchase price, excluding your down payment. The wide range depends on your loan type, whether you purchase an owner’s title policy, and how much you prepay for taxes and insurance.
In Arlington, major drivers include lender fees and mortgage insurance when applicable, Middlesex County title and recording fees, property tax prorations and escrow deposits, and inspections. Condo buyers should add condo document fees and initial dues to the list.
Line-by-line cost ranges
All figures below are estimates. Ask your lender for a Loan Estimate and your closing attorney for a detailed title quote.
Lender fees and mortgage costs
- Origination, processing, underwriting: typically $500 to $3,000 combined, though some lenders charge more or less.
- Appraisal: usually $500 to $1,200 depending on property type and complexity.
- Credit report and rate lock: about $25 to $75 for credit; rate lock can be $0 to $500 or built into pricing.
- Mortgage insurance: conventional loans with less than 20% down often require PMI. FHA loans include an upfront mortgage insurance premium of 1.75% of the loan that can be financed or paid at closing.
Title, closing, and recording
- Title search and settlement/closing attorney: roughly $500 to $1,500.
- Lender’s title insurance policy: required by most lenders; the premium scales with the loan amount.
- Owner’s title insurance policy: optional but common; a one-time premium that scales with price.
- Recording fees in Middlesex County: per-document charges often range from about $50 to $200 depending on document type and pages.
- Municipal certificates and lien searches: usually $50 to $300.
Prepaids and escrow deposits
- Property tax proration: you reimburse the seller for prepaid taxes, based on the closing date and the current Arlington tax bill.
- Initial escrow deposits: lenders often collect 2 to 6 months of taxes and homeowners insurance to fund your escrow account.
- Prepaid mortgage interest: covers interest from your closing date to your first payment date.
- First year of homeowners insurance: commonly $600 to $2,000 or more, paid at or before closing.
Inspections and conditional reports
- General home inspection: typically $350 to $700; larger or older homes may cost more.
- Pest inspection: about $50 to $200.
- Radon test: about $100 to $250. Sewer/septic, chimney, lead paint, and other specialty inspections vary. Most Arlington homes are on municipal sewer; septic is uncommon but possible in edge cases.
- Condominium document or certificate: often $200 to $500 for the resale package.
Other common items
- Buyer’s attorney (if you hire one): about $500 to $1,500.
- HOA dues and special assessments: your prorated share or first month may be due at closing.
- Wires, couriers, and misc.: often $50 to $200.
Cash to close: the simple formula
Use this framework to plan your funds:
- Cash to close = down payment + closing costs + prepaids and escrow deposits − any seller or lender credits.
Your Loan Estimate will show estimated cash to close early in the process. Your Closing Disclosure, delivered at least three business days before closing, will show the final number.
Sample Arlington estimates
All examples below are estimates for illustration only. Actual costs vary by lender, loan type, and timing.
Scenario A: $500,000 purchase
- Down payment (10%): $50,000
- Estimated closing costs (2.5%): $12,500
- Appraisal $700; inspection $500; title and recording $1,500; lender fees $2,000; prepaid taxes and insurance/escrows about $6,000; other $1,800
- Estimated cash to close: $62,500 before any credits
Scenario B: $800,000 purchase
- Down payment (20%): $160,000
- Estimated closing costs (2.5%): $20,000
- Appraisal $850; inspection $600; title and recording $2,400; lender fees $2,500; prepaid taxes and insurance/escrows about $11,000; other $650
- Estimated cash to close: $180,000 before any credits
Scenario C: $1,200,000 purchase
- Down payment (20%): $240,000
- Estimated closing costs (2.2%): $26,400
- Appraisal $1,200; title and closing $3,500; prepaid taxes and insurance/escrows about $18,000; lender fees $2,200
- Estimated cash to close: $266,400 before any credits
Note: FHA buyers should factor in the 1.75% upfront mortgage insurance premium. You can finance it into the loan to reduce cash to close or pay it at closing.
Get firm numbers early
Your lender must provide a Loan Estimate within three business days of your application. Use it to compare fees and plan your cash needs. Ask for scenarios at different down payments or loan types.
Request a title fee and title insurance quote from your closing attorney so you know the recording and policy costs. For Arlington property taxes, ask the Assessor’s Office and Town Collector for the latest bill and annual rate so you can estimate prorations and escrow deposits. Condo buyers should request HOA dues, special assessments, and any condo resale document fees early.
Timing and small choices that add up
Your closing date affects prepaid interest. Closing later in the month can reduce the number of days you prepay. If you are financing with an escrow account, expect the lender to collect several months of taxes and insurance. That can be a large line item, especially for higher-priced homes.
If repairs are needed, decide whether you want a seller credit at closing or work completed before closing. Credits can offset your cash to close, subject to lender program limits.
Ways to reduce or offset costs
- Ask for seller credits: your agent can negotiate a fixed dollar amount or percentage to offset closing costs, subject to lender limits.
- Compare lenders: review multiple Loan Estimates and compare total costs, not just the rate.
- Shop title insurance: owner’s coverage is optional; you can compare rates and discuss coverage with your closing attorney.
- Adjust timing: choose a closing date that balances your move timing and prepaid interest.
- Coordinate inspections: right-size your inspection scope based on property age and features so you pay for what you need.
Arlington and Middlesex County specifics
- Property taxes and bills: the Arlington Assessor’s Office and Town Collector can provide the current tax rate, the most recent bill, and any outstanding balances. These figures drive prorations and escrow deposits.
- Recording: your deed and mortgage are recorded with the Middlesex County Registry of Deeds. Per-document fees vary by document and pages. Your closing attorney will confirm the current schedule.
- Condo resales: expect a fee for the association to provide resale documents. Ask for the amount when you offer so you can budget.
- Common local practice: buyers and sellers often engage attorneys in Massachusetts. Escrow accounts for taxes and insurance are common when you have a mortgage. Owner’s title insurance is widely purchased but remains optional.
- Environmental and safety checks: radon testing is common in New England. Older homes may warrant lead paint, oil tank, chimney, or sewer scope evaluations.
Your next steps
- Set a budget using 2% to 5% for closing costs, plus your down payment.
- Ask your lender for a Loan Estimate and request a title quote early.
- Pull the latest Arlington tax bill to estimate prorations and escrow deposits.
- If buying a condo, confirm dues, assessments, and resale document fees.
If you want a clear, numbers-first plan and hands-on coordination from offer to closing, reach out to Martha Sevigny for a confidential consultation.
FAQs
How much are buyer closing costs in Arlington, MA?
- A practical rule of thumb is 2% to 5% of the purchase price, excluding your down payment; your Loan Estimate and Closing Disclosure will show your exact figures.
Can a seller pay some of my closing costs in Massachusetts?
- Yes, you can negotiate seller credits toward closing costs, but lender rules limit the maximum credit by loan program and down payment.
Do I need a real estate attorney to buy a home in Massachusetts?
- Many buyers choose to hire an attorney to review documents and represent them at closing; local practice supports attorney involvement even when not strictly required.
What are prepaid taxes and escrow deposits at closing?
- Prepaid taxes reimburse the seller for their share based on the closing date, and escrow deposits are upfront funds your lender holds to pay future tax and insurance bills.
Are Middlesex County recording fees high for Arlington purchases?
- Recording fees are typically modest per document compared to the home price; your closing attorney will list exact deed and mortgage recording charges.
What is owner’s title insurance, and do I need it?
- Owner’s title insurance is an optional, one-time policy that protects your equity against certain title defects; many buyers choose it, and you can review coverage and pricing with your closing attorney.
