Purchasing a home involves more out-of-pocket expense than just the down payment. There are also closing costs to pay for items such as title policies, recording fees, inspections and fees that a lender charges for obtaining a mortgage. The following schedule is an estimate of the closing costs that a buyer can typically expect to pay at closing.
PURCHASER’S REAL ESTATE CLOSING COSTS:
Taxes: (if applicable)
Mansion Tax 1% of purchase price when $1,000,000 or over
Mortgage Recording Tax (NYC)
• Sales under $500,000 1.8% of entire mortgage
• Sales $500,000 and over 1.925% of entire mortgage
Note: Click here to view table of mortgage recording tax amounts by county. Mortgage recording tax does not apply for cooperative apartment purchases.
Mortgage Associated Fees:
Origination Costs – points varies, usually 0 - 3% value of loan
Appraisal $350 (approx)
Underwriting $450 (approx)
Processing $450 (approx)
Application $350 (approx)
Bank Attorney $850 + up
Real Estate Tax Escrow 2-6 months
Short Term Interest varies, depends on the day of the month in which the closing
occurs
Title Insurance Fees:
Owner and Lender Title Policies 5% - 7% of purchase price (approx)
Municipal Searches $450 (approx)
Deed Recording $375-950 (approx based on county)
Real Estate Taxes varies
Note: Purchasers of cooperative apartments usually do not purchase title insurance, and instead pay for a lien search which is approximately $450. However, see our blog entry, Co-op Buyers Should-Consider Purchasing Title Insurance, which explains particular situations in which it is advisable for purchasers of cooperative apartments to purchase a type of title insurance policy called an Eagle 9 policy.
Homeowner’s Insurance:
Policy varies depending on lender's required coverage and purchase
price
Home Inspection:
Home and Termite Inspection $450 (approx)
Legal Fees:
Purchaser's Attorney fee varies, but usually flat-fee basis (consult with your
attorney)
To speak with an experienced real estate attorney about a closing, call us at (516) 314-8433. To learn more about our real estate closing services visit us at: https://www.jreardonlaw.com/residential-real-estate-closings