Closing costs are the fees and prepaid items due when ownership transfers. Budgeting for them early prevents a stressful surprise at the finish line.
Common buyer costs
These typically include lender charges (origination, appraisal, credit), your attorney's fee, lender's title insurance and optional owner's title insurance, recording fees, and prepaid items like property taxes and homeowner's insurance placed into escrow.
What sellers usually pay
In Massachusetts, the deed excise ("tax stamps") - the state transfer tax on the sale - is customarily paid by the seller. Sellers also generally cover their own attorney and any agreed-upon concessions.
How to plan for it
A good rule of thumb is to set aside a few percent of the purchase price for buyer closing costs, then refine that number with your lender's Loan Estimate, which itemizes everything in advance. Your attorney and agent can help you read it.
Figures and customs vary by transaction and town. This is general information, not legal or tax advice.