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Owning a home is a keystone of wealth, both financial affluence and emotional security. - Suze Orman

I recently posted about the closing costs sellers should expect to pay in a real estate sale - these costs can range from 1% to 8% of the sales price, depending on if a real estate broker is involved. For buyers, closing costs in our region typically run about 2-3% of the purchase price.

Here’s a breakdown of what buyers can expect to lay out at the closing table:

PURCHASER’S CLOSING COSTS

Lender Fees: (if applicable)
Fees vary depending on the lender.
Typically lenders deduct the following (and possibly other fees) from your mortgage proceeds:

• Underwriting fee - approx $400
• Processing fee - approx $400
• Application fee - approx $400
• Points/Mortgage Broker fee - varies
• Lender’s attorney fee - $550-$900
• Short term interest - varies

Please note: You should review your lender’s good faith estimate and consult your mortgage broker and attorney regarding specific bank fees.

Taxes: (if applicable)

• Mansion Tax - 1% of purchase price if over $1,000,000
• Mortgage Recording Tax - 1.05% of the loan amount (except in Yonkers which imposes a tax of 1.55% of the loan amount).

Please note: Mortgage recording tax does not apply for cooperative apartment purchases.

Homeowner’s Insurance: (if applicable)
Varies depending on required coverage and purchase price: $700 - $3,000.

Legal Fees:
Varies

Title Insurance Fees: (if applicable)
Title fees vary, but typically include:

• Owner & Lender title policies - (see chart below)
• Title and municipal search fees - $300-$450
• Recording fees - approx $250\
• Any real estate taxes due within 60 days of closing

Note: Purchasers of cooperatives do not need title insurance, but should get personal property insurance. They also pay for a lien search (rather than a title search) which is approx. $400.

Miscellaneous Fees: (if applicable)

• Reimbursement of Seller’s Fuel Oil Reading - usually $50 - $1000.
• Survey or survey inspection - A new survey is approximately $750 - $1,500, a survey inspection, if possible, is $200 - $400.

Title Insurance Premiums (Paid by Purchaser)
Title Insurance premiums vary depending on the purchase price.

Below are different typical premiums based on four different purchase prices.