First Time Home Buyers: Demystifying Upfront Costs

By Jenna Figueiredo
February 2, 2026. Watertown, MA

As we all know, purchasing a new home or investment property can come with a lot of uncertainty. However there are certainties that we can plan for and make sure we understand ahead of our home search and ahead of submitting an offer.

In my experience working with buying clients, I am always asked “Jenna, how much cash should we be prepared to have available?” Let’s break it down – remember these costs are paid before closing or at closing:

• Earnest Money Deposit (EMD)

  • Provided with an accepted Offer

  • Typically between $1,000 – $5,000

  • This amount is applied to your Down Payment at closing

• Down Payment

  • Most buyers put down between 3% to 10% (some go as high as 20% to avoid private mortgage insurance)

  • On a $1M home (the current median in Greater Boston), that’s $30,000–$100,000

  • The amount of Downpayment will impact your monthly mortgage payment

• Loan & Lender Fees

  • Loan Origination (about 1% of loan amount)

  • Underwriting & Processing Fee ($500 – $1,500)

  • Credit Report Fee (usually $25 – $75 per borrower)

• Home Appraisal

  • Confirms the market value of the property for the lender

  • Typical cost $400-$800

• Home Inspection

  • Typical Cost $600-$800 (average of a 2,500 sq/ft single family home in MA)

• Title & Legal Fees

  • Protects ownership rights and completes transaction

  • Includes title search, recording fees, attorney fees, title insurance, etc.

  • $2,100 – $6,800+ depending on purchase price, title insurance choices, legal complexity

Overall, (in Massachusetts considering the average sale of a single family home being $1M and financing) expect to have between ~$30,000 and ~$115,000 cash available upfront before closing on your home.

Ultimately, these numbers will vary drastically depending on your own personal and specific situation. Every home search and financial preparation is different. Reach out to me, I would be happy to help you strategize and ensure you are preparing appropriately for your home purchase today!