When you buy a Beacon Hill condo or any downtown Boston condo for that matter, there shouldn’t be any hidden charges, but there might be some surprises during the homebuying process. Here are a few that catch some Boston real estate buyers off guard.
Boston real estate closing costs can come as a surprise. Your lender may ask you to pay for a year’s worth of homeowners insurance upfront. (the national average for homeowners insurance is $2305 a year) Lenders will collect one 12th of the amount of property taxes and homeowners insurance and pay the bills the next time they are due.
You will need to pay Boston real estate taxes from the day that you close until the end of the month. You may also pay a partial month of mortgage interest and if buying a condo you may pay a partial month’s worth of Boston condo dues.
Most downtown Boston condo buyers are well aware that they need a down payment which is also usually due at closing. Mortgage lenders include closing costs in their good faith estimates. Borrowers are given a full list of charges before the closing. There should never be a surprise charge at the closing. Also if you put down less then 20% down you will need to pay a monthly fee to Private Mortgage Insurance (PMI)
Once you buy a Beacon Hill condo for sale there may be some more unexpected costs. I always tell people who are buying older homes to start an emergency house fund. Things break and they wear out too. Start the fund with $500 and add $25 a month to it every month.
There are programs that provide funds for down payments and closing costs. I have had a few home buyers take advantage of these programs. There are other options too. Let your lender know you are a first time home buyer.
This video is a crash course on closing costs for Beacon Hill condos.
For more information please contact John Ford at 617-595-3712.
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