Staring at a list of closing fees and wondering what they all mean for a Moriches home purchase? You are not alone. Closing costs can feel confusing, especially with New York’s unique taxes and Suffolk County recording rules. In this guide, you will learn what buyers typically pay, how each fee works, and how to plan your budget with confidence. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepaid items due when you take ownership and your mortgage is recorded. They are separate from your down payment. In New York, the buyer usually covers lender-related charges, title and recording fees, attorney fees, and mortgage-related taxes. The seller often pays broker commissions and may cover state transfer tax, but who pays what can be negotiated in the contract.
Typical totals in Moriches
As a planning baseline, buyers often see total closing costs between 2% and 5% of the purchase price. Your actual total depends on your loan type, property price, taxes, and whether you are in a coastal or flood zone that may require additional insurance or inspections. Always confirm exact figures with your lender, title company, attorney, and the Suffolk County Clerk.
Line-by-line costs you may see
Lender fees
These cover application, underwriting, and processing. Expect about $500 to $4,000, plus any discount points you choose to buy to lower your rate. One point equals 1% of the loan amount. Many lender fees are negotiable, so compare quotes.
Appraisal
Your lender will order an appraisal to confirm value. Typical costs run $400 to $900 for a single-family home on Long Island, with higher fees for complex properties.
Home inspection and specialized inspections
A general inspection often costs $300 to $600. Depending on age, location, and condition, you might add septic, chimney, radon, pest, mold, structural, or seawall checks. Specialized items can range from $100 to $800 each.
Title search and title insurance
A title search confirms clear ownership. Title insurance protects against covered title defects. The lender’s policy is usually required with a mortgage, and an owner’s policy is optional but commonly purchased. Premiums are a one-time cost based on price and loan amount, often totaling about 0.2% to 1.0% of the purchase price.
Attorney fees
New York real estate closings typically involve attorneys. Buyer attorney fees usually range from $1,000 to $3,000 depending on complexity.
Recording fees
These are paid to the Suffolk County Clerk to record the deed and mortgage. Totals vary by document length. Budget a few hundred dollars and confirm the current schedule.
Mortgage recording tax
New York charges a tax to record a mortgage. The rate and structure depend on jurisdiction and loan size. This tax can add several hundred to several thousand dollars to your closing costs. Your lender and title company can calculate the exact amount for your loan.
Transfer taxes and mansion tax
New York State imposes a real estate transfer tax generally calculated at 0.4% of the purchase price. Responsibility can vary by contract and local custom. For purchases at $1,000,000 or more, the state “mansion tax” typically applies, starting at 1% of the price and paid by the buyer. Check current guidance for any higher-tier surtaxes.
Prepaid items and escrows
Lenders often collect several months of property taxes and homeowner’s insurance upfront. Plan for the first year’s insurance premium or a portion of it, plus 1 to 3 months of escrow deposits for taxes and insurance, depending on your loan setup and local tax timing.
Private mortgage insurance (PMI)
If you put less than 20% down, PMI may be required. Some PMI products have a one-time upfront premium of about 1% to 2% of the loan amount. Monthly PMI, if applicable, is separate from closing costs.
Survey, flood certification, and municipal certificates
A survey may be required and can run from $300 to over $1,000. Flood-zone determinations are typically $20 to $50. Some towns require municipal certificates or code-compliance checks, which vary in cost. Confirm the requirements for your specific address.
HOA or condo items
If you buy into a condo, coop, or HOA, expect possible transfer fees, estoppels, move-in fees, or prorated dues. These often range from $100 to several hundred dollars.
Miscellaneous charges
Courier, notary, and document preparation fees typically total $50 to $300.
Local Moriches and Suffolk County factors
Moriches sits in Suffolk County, and recording is handled by the Suffolk County Clerk. Your property may fall under the Town of Brookhaven, Islip, or Southampton, and each town can have its own municipal certificate or occupancy requirements. Confirm what is needed for your specific address early in the process.
Many Moriches properties are coastal or near tidal areas. Lenders often require flood-zone checks and may require FEMA flood insurance, which can impact both your monthly payment and your closing escrows. Older homes may have septic systems or private wells, which can prompt additional inspections and potential repairs. Title work can also be more involved for older or unique properties, so allow time for the title search and any needed curative steps.
Example estimates
Below are simple illustrations for planning purposes only. Always use current quotes for your actual closing.
Example A: $500,000 purchase, 20% down, conventional loan
- Estimated closing-cost range at 2.0% to 3.5%: about $10,000 to $17,500
- Lender fees, appraisal, credit report: about $1,200 to $3,000
- Title premiums and related title charges: about $1,500 to $3,500
- Attorney fees: about $1,200 to $2,500
- Recording and mortgage recording tax: about $500 to $2,000
- Prepaids and escrows for taxes and insurance: about $2,000 to $6,000
- Inspections, surveys, municipal certificates: about $500 to $2,000
Example B: $1,250,000 purchase, coastal Long Island home, $1,000,000 loan
- Estimated closing-cost range at 2.5% to 5.0%: about $31,250 to $62,500
- Mansion tax at 1% of price: $12,500, paid by the buyer
- Higher title premiums and larger escrow deposits likely
- Potential flood insurance requirement depending on zone
Timeline from contract to keys
- 0 to 7 days after contract: Complete loan application, schedule inspections, and review your initial Loan Estimate that outlines projected closing costs.
- 7 to 21 days: Appraisal and title search in progress, municipal and HOA documents requested as needed.
- 3 to 10 days before closing: You receive your Closing Disclosure with final figures. You have a three-business-day review period before you can close.
- Closing day: Bring wired or certified funds as instructed, sign documents, and expect the deed and mortgage to be recorded after the appointment.
Buyer checklist
- Request a detailed Loan Estimate and later compare it to your Closing Disclosure line by line.
- Ask the title company for title premium quotes early.
- Confirm whether the mansion tax and state transfer tax will apply, and who is responsible under your contract.
- Check flood-zone status early and price any required flood insurance.
- Budget for escrow deposits, potential PMI, and any HOA or condo fees.
- Verify wiring instructions by phone with the title company to prevent fraud.
Ways to save on closing costs
- Shop at least two or three lenders and compare rates and fees using their Loan Estimates.
- Negotiate for a seller credit toward closing costs when market conditions allow.
- Consider paying discount points only if you will keep the loan long enough to break even.
- Ask whether the seller can cover certain items, such as transfer taxes or specific endorsements, as part of your offer strategy.
- Work with a reputable title company and ask about available bundling or discounts.
Who pays what in New York
Customs vary by county and by deal, but there are common patterns. Sellers often cover broker commissions and may cover the state transfer tax, while buyers usually pay lender fees, title and recording charges, attorney fees, and any mortgage recording tax. That said, everything is negotiable. Your contract will spell out who pays each item, so review it with your attorney.
How to get your exact numbers
Use your lender’s Loan Estimate to set an initial budget, then rely on your Closing Disclosure for final figures several days before closing. For local fees, confirm the Suffolk County recording charges and any town-specific certificate requirements for your property. Your attorney and title company can quote exact title premiums, calculate mortgage recording tax, and walk you through prepaids and escrows so nothing is a surprise at the table.
Have more questions about closing costs or how to structure a buyer credit in Moriches? Get personal guidance and a clear plan from Donna Lomenzo. Donna offers full-service buyer representation, negotiation, and closing management throughout Suffolk County so you can move forward with confidence.
FAQs
What are typical buyer closing costs in Moriches?
- Many buyers plan for about 2% to 5% of the purchase price, with the actual total driven by loan type, taxes, insurance, and local fees.
How does the New York mansion tax work for buyers?
- If the purchase price is $1,000,000 or more, a state mansion tax generally starting at 1% applies and is usually paid by the buyer.
Who pays New York transfer tax in a Moriches sale?
- New York State sets a transfer tax, commonly 0.4% of price, and responsibility is defined in the contract based on local custom and negotiation.
What is the mortgage recording tax in Suffolk County?
- New York charges a mortgage recording tax based on loan amount and jurisdiction, which can add several hundred to several thousand dollars to closing costs.
When will I see my final closing numbers?
- Your lender must deliver a Closing Disclosure at least three business days before closing, which lists your final figures.
