Closing Costs when you purchase a home

Closing Costs When Buying a Home in New York

What Buyers Need to Know Before Closing Day

When you buy a home in New York or Westchester County, your down payment is just the start. You’ll also pay a variety of additional expenses — known as closing costs — to complete the transaction. Understanding them ahead of time helps you avoid surprises at the closing table.

---

Common Closing Costs & Fees for NY / Westchester Home Buyers

Here are the most common closing costs you should expect. Depending on your property type (house, condo, co-op), mortgage, and location, your costs may vary:

• Attorney fees – Legal review of contract, coordination with lender and seller, representation at closing.
• Mortgage/Lender fees – Origination fees, application fees, processing, underwriting, possibly discount points if you buy down your rate.
• Title search & Title insurance – Covers you and the lender against any undisclosed liens or legal issues with ownership history.
• Recording and filing fees – Paid to the county or municipality to record deed, mortgage, and other documents.
• Prepaid property taxes & homeowners insurance – Often part of the initial escrow account funding; may include several months of taxes or insurance premiums depending on timing.
• Mortgage insurance or PMI (if applicable) – Required when down payment or equity is below a certain threshold, paid upfront or monthly.
• Transfer taxes – State and sometimes county or local taxes due when property ownership changes hands.
• Co-op/Condo Related Fees (if applicable) – Application fees, move-in/move-out fees, flip tax, building reserves, or association transfer fees.
• Flip tax (for co-ops) – Some cooperative buildings impose a fee when shares are sold or transferred. Might be paid by the buyer or split with seller, depending on building policy.
• Mansion tax (for high-value homes) – In New York State, properties purchased at or above $1,000,000 may be subject to the “mansion tax.”
• Home inspection fee – Cost of independent home inspection (often before closing but part of home-buying expenses).
• Appraisal fee (if financing) – Lender requires an appraisal to confirm the home’s value as part of loan underwriting.
• Survey fees (if required) – Some lenders or municipalities may require a property survey to confirm boundaries, especially in rural or non-grid areas.
• Homeowners’ or HOA fees (for condos/co-ops) – Some condos or co-ops require buyers to pay first month’s dues, building reserves, or special assessments at closing.
• HO-6 or hazard insurance (condos/co-ops) – Buyer may need to prepay building’s required insurance or contribute to reserves before closing.
• Municipal / local transfer or mansion-tax surcharges (if any) – Some towns/counties may impose additional transfer taxes or fees.
• Escrow & reserve setup costs – Money collected at closing to fund future taxes, insurance, HOA dues, or maintenance reserves.

---

Why Understanding Closing Costs Matters

This is not about discouragement — it's about being prepared. Closing costs can add up significantly, and budgeting just for the down payment may leave you short at the finish line.

Discussing expected closing costs early with your lender, attorney, and real estate agent allows you to plan properly, compare cost estimates, and avoid surprises.

---

Tips to Plan Ahead & Save

• Ask for a detailed Loan Estimate early — Lenders provide this before you commit, giving you a breakdown of estimated fees.
• Review the Closing Disclosure carefully — You’ll get this 3 days before closing; compare it to the Loan Estimate and ask questions about any differences.
• Include inspections, appraisal, and HOA/Co-op fees — These add up, especially for condos/co-ops or older properties.
• Save 3–5% of the home price beyond the down payment — This is often a safe buffer to cover all closing costs and some prepaid items.
• Work with a local expert — Agents and attorneys in Westchester or your target town will be familiar with typical closing cost ranges and local taxes or fees.

---

Need Help Estimating Costs? I’m Here for You.

Every purchase is unique — cost varies by town, property type, loan, and timing. If you’re looking at homes in Westchester or New York State, let me help you run the numbers so you know exactly what to budget.

Thomas Roberts
Real Estate Agent | William Raveis
📞 (914) 755-9816
linktr.ee/RealtorTom