Buying a home in Harris Hill means planning for more than your down payment. The extra cash you bring to the table on closing day can feel confusing until you see how each line item works together. With a clear breakdown, you can budget with confidence and avoid surprises. In this guide, you’ll learn what buyer closing costs include, who charges them, when they are due, and how to estimate your total early for an Erie County purchase. Let’s dive in.
What closing costs include
Closing costs are the non‑purchase‑price amounts you pay to finish the sale. These cover lender fees, title and attorney services, government recording and taxes, prepaid items like insurance and interest, inspections, and a few administrative charges. You will see them itemized on your lender disclosures and your final settlement statement.
As a rule of thumb, plan for about 2% to 5% of the purchase price for closing costs, not including your down payment. Your exact total depends on your loan type, price point, and local requirements in Erie County and the Town of Clarence.
Who charges what in Erie County
Loan and lender fees
Lenders and their vendors charge several items tied to your mortgage. Common examples include:
- Loan application or origination fee
- Discount points if you choose to buy down your rate
- Appraisal fee
- Credit report, flood certification, underwriting and processing fees
- Tax service and wire fees
- Private mortgage insurance or upfront mortgage insurance, if required by your loan
Most of these are shown on your lender’s early disclosure and paid at closing. Some items, like the appraisal, may be collected upfront.
Title and attorney costs in New York
In New York, buyers commonly work with a real estate attorney for contract review and closing. You should plan for your own attorney’s fee. A title company will research the property’s history, provide title insurance, and handle settlement logistics.
- Title search and exam fee
- Lender’s title insurance policy, required by your lender
- Owner’s title insurance policy, optional but commonly purchased in New York
- Settlement or escrow handling fees
All title and attorney items are typically paid at closing as one‑time charges.
Government recording and taxes
Erie County records your deed and mortgage through the County Clerk. Fees apply for recording these documents. New York State also imposes transfer taxes and a mortgage recording tax. Who pays transfer taxes can be set by local custom or contract, so your purchase agreement will control what you owe.
These items are paid at or right after closing so your documents can be recorded and your ownership protected.
Prepaids and escrow deposits
Prepaids are not fees for services. They are advance funds that set up your mortgage payments and homeownership costs.
- Prepaid interest from the funding date to your first mortgage payment
- One year of homeowners insurance, often required at or before closing
- Initial escrow deposits, often 1 to 3 months of property taxes and insurance
- Property tax prorations, where you reimburse the seller for taxes they already paid beyond the closing date
Property condition and municipal items
Most buyers order inspections early in the process. These are typically paid when scheduled.
- Home inspection, plus radon, pest, septic, well, and other tests as needed
- Survey or plot plan if required by the lender or recommended for your situation
- Condo or HOA transfer fees or document fees when applicable
In the Town of Clarence, some properties may require municipal searches or compliance items for certain property types. Your attorney, agent, and title company will help check for any local requirements that could add fees.
Other small items
You may see a few additional line items:
- Title endorsements
- Courier, overnight, and wire transfer charges
- Recording charges for releasing prior liens, if needed
These are usually modest amounts that show up on your final statement.
When costs are due
You will get two key documents that keep your budget on track:
- Loan Estimate: Your lender must send this within three business days of your application. It outlines your early estimate of loan and closing charges.
- Closing Disclosure: You must receive this at least three business days before you sign final documents. It lists the exact cash to close and every line item.
Most closing costs are paid on closing day, shown on your settlement statement. Inspections are typically paid at the time of service, before closing. Homeowners insurance is often due at or just before closing, and prepaids and escrow deposits are collected at closing.
Estimate your total early in Harris Hill
Use a simple process to dial in your budget early:
- Ask your lender for a Loan Estimate and a clear breakdown of prepaids and escrow deposits.
- Request a preliminary title quote from a local title company so you can see title insurance premiums and settlement fees.
- Confirm Erie County recording fees and whether any mortgage recording or transfer taxes apply to you under your contract.
- Add your prepaids: one year of homeowners insurance, initial escrows for taxes and insurance, and prepaid interest based on your target closing date.
- Add inspections, a survey if needed, any HOA or condo transfer fees, and potential municipal certificates.
- Keep a 5% to 10% buffer for small administrative items and last‑minute adjustments.
A Harris Hill example (hypothetical)
Here is a sample estimate to help you visualize the math. These numbers are for illustration only. Your lender, attorney, title company, and the County Clerk will provide actual figures.
- Purchase price: $350,000
- Lender and third‑party loan fees and appraisal: $1,500 to $4,000
- Title and attorney fees plus title insurance: $1,500 to $3,500
- Recording and county charges, and any mortgage recording tax: variable by current schedules and loan details
- Prepaids and escrow deposits: $2,000 to $4,000
- Inspections, survey, HOA or condo fees if applicable: $300 to $1,000
Illustrative buyer closing costs: about $7,000 to $12,000, roughly 2% to 3.5% of the purchase price, not including your down payment. Your Closing Disclosure will confirm the exact cash to close.
What is negotiable
Some costs are fixed by law or local fee schedules, such as county recording charges. Others are set by your lender or the title company. Allocation of transfer taxes can vary by contract, and you can also negotiate for seller concessions toward your closing costs. Your attorney and agent will explain your options and what is common in Erie County at your price point.
Harris Hill and Erie County tips
- Confirm current Erie County Clerk recording fees. These can change and are required to record your deed and mortgage.
- Check New York State rules for transfer and mortgage recording taxes. Your attorney and title company will calculate any amounts owed by you under your contract.
- In New York, buyers commonly retain an attorney for contract review and closing. Plan for that fee in your estimate.
- Title insurance is standard in New York. A lender’s policy is required when you finance, and many buyers also purchase an owner’s policy for added protection.
- Municipal items in the Town of Clarence may apply for certain properties, such as municipal searches or compliance checks. Your team will verify what is needed.
Your next steps
- Get pre‑approved and request your Loan Estimate within three business days of application.
- Ask a local title company for a preliminary title quote.
- Order inspections early since you typically pay those when scheduled.
- Plan for 2% to 5% of the purchase price in closing costs, plus prepaids, and keep a small buffer.
- Bring certified funds or send a wire as directed for closing day. Follow your settlement agent’s instructions closely.
If you want help building a clear, personalized estimate for a Harris Hill purchase, reach out. Benjamin Domagala can coordinate your lender quote, title estimate, and attorney fee range so you know your numbers early and can move forward with confidence.
FAQs
How much cash will I need at closing in Erie County?
- Plan for your down payment plus closing costs and prepaids. A general guideline is 2% to 5% of the purchase price for closing costs. Your Closing Disclosure, provided at least three business days before closing, will show the exact amount.
Who pays transfer tax and recording fees in Erie County?
- Recording fees are paid at closing to record your deed and mortgage. Transfer taxes are set by New York State and any local rules, and who pays is negotiable by contract. Your attorney will confirm what your agreement requires.
Do I need owner’s title insurance in New York?
- An owner’s policy is optional but commonly recommended to protect your ownership. If you have a mortgage, your lender will require a separate lender’s title insurance policy.
Are attorneys required for buyers in New York?
- Not by law, but it is customary for buyers to retain a real estate attorney for contract review and closing in New York. Fees vary by attorney and transaction complexity.
When do I pay for inspections in Harris Hill?
- Buyers typically pay for home, pest, radon, and other inspections at the time of inspection, before closing. These do not usually come out of your closing funds.
How are Erie County property taxes handled at closing?
- Taxes are prorated as of your closing date. You may also deposit initial funds into an escrow account so your lender can pay future tax bills on schedule.
