By Vanessa Saunders
Closing costs are an important consideration for anyone looking to purchase a home in New York State. In this blog post, we’ll cover the basics of closing costs and what you can expect to pay when buying a home in the Empire State.
First of all, it’s important to understand what closing costs are. Simply put, closing costs are fees associated with the purchase of a home that are paid at the time of closing. These fees can vary depending on a number of factors, including the purchase price of the home, the location of the property, and the type of mortgage you’re taking out.
In New York State, closing costs typically range from 2% to 5% of the purchase price of the home. So, if you’re buying a home for $300,000, you can expect to pay anywhere from $6,000 to $15,000 in closing costs. That may sound like a lot, but it’s important to remember that closing costs are a necessary part of the home-buying process.
So, what exactly do closing costs include? Here are some of the most common fees you can expect to pay:
- Attorney fees: In New York State, it’s recommended that both the buyer and seller have their own attorney to help with the closing process. Attorney fees can vary, but you can expect to pay anywhere from $1,000 to $2,500.
- Title insurance: This insurance policy protects the buyer and lender from any issues that may arise with the title to the property. The cost of title insurance can vary, but it typically ranges from $1,000 to $3,000.
- Mortgage application and processing fees: These fees cover the cost of processing your mortgage application and can range from $500 to $1,500.
- Home inspection fees: It’s highly recommended that you have a home inspection done before you purchase a home. The cost of a home inspection can vary, but you can expect to pay anywhere from $300 to $1,000.
- Appraisal fees: Your lender will require an appraisal of the property to ensure that the purchase price is in line with the actual value of the home. Appraisal fees typically range from $300 to $500.
- Recording fees: These fees cover the cost of recording the deed and mortgage with the county clerk’s office. The cost of recording fees can vary, but you can expect to pay around $200.
These are just a few examples of the fees you can expect to pay when closing on a home in New York State. It’s important to note that closing costs can vary depending on a number of factors, so it’s always a good idea to consult with your real estate attorney (check out our resources page for a few names,) to get a more accurate estimate of what you can expect to pay.
In conclusion, closing costs are an important consideration when buying a home in New York State. While they may seem daunting, it’s important to remember that they’re a necessary part of the home-buying process. By understanding what closing costs are and what they include, you’ll be better prepared to navigate the home-buying process and make a smart investment in your future.
