Buying a home in Hanover comes with one big question beyond your down payment: what exactly are you paying at closing? You are not alone if you are unsure. Closing costs can be confusing, and the totals vary by loan type, price, and local fees. This guide breaks down what is included, what is typical in Plymouth County, and how you can estimate and even reduce what you pay. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepayments due at settlement. They are separate from your down payment and moving expenses. In Hanover and the broader Plymouth County market, you will usually see these categories on your Closing Disclosure.
Lender fees
These are the costs to process and approve your mortgage. Common items include the loan origination or underwriting fee, processing fee, credit report, appraisal, flood certification, and any discount points you choose to buy.
- Appraisal: typically $400 to $800 for a single-family home.
- Credit report: roughly $25 to $50.
- Underwriting and processing: often $400 to $2,000. Some lenders bundle or waive fees.
- Discount points: 1 point is usually equal to 1 percent of your loan amount.
For definitions and how these appear on your forms, review the CFPB’s overview of closing costs and mortgage disclosures in the Loan Estimate and Closing Disclosure resources on the Consumer Financial Protection Bureau site.
Title and settlement
Title companies and closing attorneys handle the title search, prepare documents, and coordinate the closing. You will pay for title exam, settlement or attorney fees, and title insurance.
- Title search and settlement fee: often $300 to $900.
- Lender’s title insurance: required by your lender, priced by loan amount.
- Owner’s title insurance: optional but recommended. Premiums vary with price, often $500 to $3,000 or more for higher-priced homes.
Government and recording fees
These are fees to record your deed and mortgage with the county.
- Plymouth County recording: commonly $75 to $200 total depending on the number of documents. Confirm the current fee schedule with the Plymouth County Registry of Deeds.
- Transfer or conveyance tax in Massachusetts: typically paid by the seller in local practice, though it is negotiable. Verify during contract negotiations and with your closing attorney.
Prepaids and escrow deposits
These are not fees to a provider. They fund your insurance, taxes, and interest.
- Prepaid interest: covers interest from closing to month end. Amount depends on your closing date and rate.
- Homeowners insurance: you will usually pay the first year premium upfront. Typical annual premiums are $800 to $2,000+ depending on the property.
- Initial escrow deposit: lenders often collect about two months of property tax and two months of insurance to seed your escrow. Totals vary with Hanover’s tax rate and your policy.
To estimate taxes and escrows, get Hanover’s current property tax rate from the Town Assessor.
Other one-time items
Depending on the property, you might see HOA or condo transfer fees ($100 to $500+), recording of lien releases, or required local certificates if applicable. Your title company will flag these in your estimate.
How much to budget in Hanover
A simple rule of thumb is 2 to 5 percent of the purchase price for buyer closing costs, not including your down payment. This aligns with national consumer guidance from the Consumer Financial Protection Bureau.
- $400,000 purchase: about $8,000 to $20,000.
- $600,000 purchase: about $12,000 to $30,000.
Within that range, lender fees and title costs are the most predictable, while prepaids and escrow deposits depend on your closing date, Hanover’s tax rate, and your insurance premium.
Massachusetts specifics to know
- Transfer tax: in Massachusetts, seller-paid transfer taxes are common in practice. Buyers typically pay recording and mortgage-related fees. Confirm details with your attorney and in the purchase and sale agreement.
- Closing process: title companies and attorneys commonly manage closings. You will receive a Loan Estimate early in the process and a final Closing Disclosure at least three business days before closing. The CFPB explains how to read both forms so you can verify the numbers.
For recording fee details, consult the Plymouth County Registry of Deeds. For property tax rates and billing schedules, check Hanover’s Assessor and Treasurer resources.
Ways to reduce or shift costs
Seller concessions
You can negotiate for the seller to pay part of your closing costs. Program limits apply and must be approved by your lender.
- FHA: seller concessions commonly allowed up to 6 percent of the sale price. See HUD’s FHA Single Family Housing Policy Handbook for program rules.
- Conventional: caps vary by down payment and property type. Many scenarios allow around 3 percent with lower down payments and higher caps with larger down payments. Confirm with your lender.
- VA: allowed, but the structure and caps differ from FHA and conventional. Your VA lender will guide what is eligible.
Seller credits cannot exceed your actual closing costs and usually cannot be used for your required minimum down payment.
Builder incentives
With new construction, builders often offer credits toward closing costs or interest rate buydowns to help you lower cash to close or monthly payments. Credits must meet loan program rules and appear on your Closing Disclosure.
Lender credits
A lender can offset some costs in exchange for a slightly higher interest rate. This can lower your cash at closing but raises long-term interest costs. Ask your lender for side-by-side comparisons.
Step-by-step: estimate your Hanover closing costs
Gather these inputs first:
- Purchase price and planned down payment
- Loan type and loan amount
- Any seller or builder credits
- Hanover property tax rate and typical tax bill
- Your homeowners insurance quote
- HOA or condo transfer fees, if applicable
- Decision on owner’s title insurance
Then follow these steps:
- Set a starting budget at 2 to 5 percent of the purchase price. Example: $500,000 equals $10,000 to $25,000.
- Request Loan Estimates from at least two local lenders. This will lock in lender fees and give early estimates for prepaids and cash to close.
- Ask a local title company or closing attorney for a title and settlement estimate. They will include Plymouth County recording fees and title insurance premiums.
- Add prepaids. Include first-year homeowners insurance, estimated prepaid interest, and the initial escrow deposit. Use Hanover’s tax rate to estimate the escrow for taxes.
- Subtract negotiated seller credits, builder incentives, and any lender credits.
- Compare scenarios. Review whether paying points for a lower rate or taking a lender credit makes more sense for your timeline.
- Verify your final numbers on the Closing Disclosure at least three business days before closing.
Common pitfalls to avoid:
- Forgetting the escrow deposit for taxes and insurance
- Assuming the buyer pays transfer taxes in Massachusetts without checking local practice
- Believing a no closing cost loan means there are no costs, when they are actually built into the rate
Local resources to verify numbers
- Plymouth County Registry of Deeds for recording fees and process. Visit the Registry to confirm the latest schedule before you close.
- Town of Hanover Assessor for the current property tax rate and assessing information.
- Town of Hanover Treasurer or Collector for the tax billing schedule and payment timing that can affect prorations.
- Consumer Financial Protection Bureau for a plain-English guide to closing costs, the Loan Estimate, and the Closing Disclosure.
- HUD’s FHA Single Family Housing Policy Handbook for FHA concession rules.
The bottom line for Hanover buyers
Closing costs reflect lender fees, title services, government recording charges, and prepaids for taxes and insurance. In Hanover and across Plymouth County, planning for 2 to 5 percent of the purchase price is a smart starting point. From there, use real quotes from a lender and title company, confirm Hanover’s tax rate, and negotiate seller or builder credits where allowed.
If you want a clear, line-by-line estimate tailored to a specific Hanover property, our team is ready to help. Connect with The Guimares Group to review your Loan Estimate, get a local title quote, and understand your true cash to close.
FAQs
How much should Hanover buyers budget for closing costs?
- Most buyers should plan on 2 to 5 percent of the purchase price, then refine with a Loan Estimate from a lender and a title quote.
Who typically pays the transfer tax in Massachusetts?
- In local practice the seller usually pays transfer or conveyance taxes, but terms are negotiable. Confirm in your contract and with your closing attorney.
Can a seller or builder cover my closing costs in Hanover?
- Yes, within loan program limits. FHA commonly allows up to 6 percent, conventional caps vary, and VA has its own rules. Credits cannot exceed your actual costs.
What title and settlement costs should I expect in Plymouth County?
- Expect a title search and settlement fee around $300 to $900, lender’s title insurance, and optional owner’s title insurance that scales with price. Recording fees are typically modest.
Where do I find the most accurate estimate for my Hanover home?
- Combine a lender’s Loan Estimate with an itemized title and settlement quote. Verify recording fees with the Plymouth County Registry and taxes with the Hanover Assessor.
