What Are Closing Costs in NY?

Q. What are closing costs?

A. Closing costs are all of the are the fees paid in connection with the purchase, sale, and financing of real property.

Under the newly enacted Dodd Frank Act, lenders are required to provide two forms: 1) a Loan Estimate (LE) and 2) a Closing Disclosure (CD). The Loan Estimate provides an estimate for the loan fees and most, but not all, closing costs. It is provided within three (3) days of the date you apply for a mortgage, to allow you to compare the costs elsewhere.

A Closing Disclosure is provided at least seven (7) days prior to closing, and contains both the terms of the mortgage and a detailed account of the final loan terms, fees, and closing costs.  There are strict rules that require the Closing Disclosure to be consistent with the Loan Estimate.

The Closing Disclosure will contain the following costs:

  • Loan origination fee
  • Lender’s attorney fee
  • Credit report fee
  • Initial escrow payment at closing
  • Miscellaneous title fee
  • Owner’s title insurance premium
  • Appraisal fee
  • Inspection fee
  • Lender’s title insurance premium
  • Title endorsements
  • Deed & mortgage recording fees
  • Mortgage tax
  • Prepaid interest
  • Survey fee
  • Property taxes at closing

The Closing Disclosure will not show:

  • Borrower’s attorney fee
  • Title closer fees