Buying Real Estate January 31, 2023

Costs associated with buying a house in Worcester

What are the costs associated with buying a house in Worcester or Worcester County?
In addition to the purchase price of the property, there are other costs to consider, which will vary with each transaction:
  • Home inspection – approximately $400-600. This is an important component! No matter your level of expertise, it’s never a bad idea to get a home inspection. Other inspection costs can include termite/pest inspection, lead paint inspection, radon test, well water quality test, etc.
  • Attorney fee – approximately $700-1200. Can often be reduced if the bank or closing attorney will also represent the buyer.
  • Title Examination and Certification (outside of Worcester and contiguous towns) – $300-500. Lender Title Insurance Policy costs approximately $3.00 per thousand; an owner may obtain Owner Title Insurance Policy for an additional fee.
  • Fees charged by lending bank – application fee, processing fee, attorney fee.
  • Appraisal – usually $400-600 for residential property (1-4 units)
  • Prepaid costs – mortgage interest, real estate taxes, homeowner insurance policy, water/sewer bill, condominium fees, oil-in-tank (if applicable).
  • Escrows, if required, for real estate taxes, property insurance, mortgage insurance.
  • Costs associated with your loan – Private Mortgage Insurance for buyers with less than a 20% down payment; ‘Points’ added to loan; FHA Mortgage Insurance Premium; VA loan fees.
  • Certificate of Municipal Liens, payable to City/Town, certifying that there are no municipal liens on the property.
  • Recording fees for deed, mortgage, and municipal lien certificate – approximately $500.
  • Plot plan – $150-300.
Due to the variablity of these fees, talk with your mortgage broker and attorney regarding what you can expect to pay.