#closing-costs

#closing-costs

The total money you need for a down payment and closing costs to purchase a condo in Boston depends on the purchase price and your financing. Closing costs generally range from 2% to 5% of the purchase price. The down payment can range from 3% to 20% or more, depending on your loan type. Loan Type: Government-backed loans like VA and USDA may offer 0% down payment for qualifying buyers, while FHA loans can be as low as 3.5%.

When you're preparing to close on a home, you'll receive several final documents outlining your loan terms, closing costs, and the exact amount each party must pay or receive. Two of the most important are the closing disclosure and the settlement statement (also called an ALTA settlement statement or, in older transactions, a HUD-1). Although the two forms often contain similar numbers, and those numbers must match, they aren't interchangeable.

Buying a home is rarely just about the purchase price. Behind the scenes, dozens of smaller numbers (think loan fees, taxes, insurance, and escrow deposits) add up to one of the most important figures in the transaction: your cash to close. It's the lump sum you'll need to bring to the closing table to finalize your home purchase. Many buyers assume it's the same as the down payment, but it's actually a much larger equation that captures every expense, credit, and adjustment in your transaction.