Buying in Cheektowaga and wondering how much cash you will actually need to close? You are not alone. Closing costs can feel like a moving target, especially with New York taxes and lender requirements in the mix. In this guide, you will get a simple, local breakdown of what you will likely pay, what each fee does, and smart ways to prepare so there are no last minute surprises. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepayments you make to finalize your home purchase. They are separate from your down payment. Costs include lender charges, title and attorney services, state and county taxes, and money your lender collects upfront for insurance and property tax escrows.
A practical rule of thumb for Cheektowaga buyers is to plan for about 2 to 4 percent of the purchase price, depending on your loan type, price point, and the exact mix of taxes and fees.
How much buyers pay in Cheektowaga
While totals vary per deal, many New York buyers use 2 to 4 percent of the purchase price as a planning range for closing costs. The big swing factors are your loan size and type, title premiums, state recording and transfer taxes, and how much your lender collects for tax and insurance escrows.
New York items that can affect your total include the state real property transfer tax and the statewide mansion tax on purchases of 1,000,000 dollars or more. Mortgage recording taxes and county recording fees also apply and vary by county. In Erie County, exact recording fees and mortgage recording tax should be confirmed with the Erie County Clerk and your lender or title company.
Line by line: what you will see
Lender and loan fees
- Loan origination, processing, underwriting. Often 0.5 to 1.5 percent of the loan amount, or a flat fee. Some lenders adjust your rate instead of charging these directly.
- Discount points. Optional fee to lower your interest rate. One point equals 1 percent of the loan amount.
- Appraisal. Commonly about 400 to 900 dollars based on property type and complexity.
- Credit report, flood certification, tax service. Usually 25 to 150 dollars each.
- Mortgage application fee. Sometimes charged, varies by lender.
- Mortgage recording tax. New York charges a tax to record your mortgage. Amount depends on loan size and local rates. Confirm responsibility and exact figures with your lender and the Erie County Clerk.
Title, settlement, and attorney
- Title insurance. A lender’s policy is required with a mortgage. An owner’s policy is optional but strongly recommended. Premiums are based on purchase price and are typically a one-time cost that can range from a few hundred dollars on smaller purchases to several thousand on higher-priced homes.
- Title search and examination. Typically several hundred dollars.
- Settlement or closing fee. Often 200 to 600 dollars.
- Attorney fees. New York buyers commonly use an attorney. Fees often range from 500 to 1,500 dollars or more depending on complexity.
- County recording fees. Recording your deed and mortgage usually totals a few hundred dollars. Confirm the current schedule with the Erie County Clerk through your title company or attorney.
Taxes and transfer fees
- New York State real property transfer tax. Standard state rate is 2 dollars per 500 dollars of consideration, which equals 0.4 percent of the sale price.
- New York State mansion tax. An additional 1 percent applies on residential purchases of 1,000,000 dollars or more.
- Local transfer taxes. Some counties or towns add their own transfer taxes. Verify with Erie County and the Town of Cheektowaga for any local rules.
- Property tax proration. Taxes are prorated between buyer and seller based on the closing date and the local payment schedule.
Prepaids and escrow deposits
- Homeowner’s insurance. Your first year’s premium is collected at closing. In the Cheektowaga area, many policies fall between roughly 600 and 2,000 dollars or more depending on coverage.
- Escrow cushions. Lenders often collect 2 to 3 months of property tax and insurance to set up your escrow account.
- Prepaid interest. Interest from your closing date to month end.
Inspections, surveys, and optional items
- General home inspection. Typically 300 to 600 dollars. Specialty inspections, such as radon or septic, are extra.
- Pest or termite inspection. About 75 to 200 dollars.
- Survey. If needed, can range from 300 to 1,000 dollars or more.
- HOA costs. If the home has an association, expect prorated dues and possible transfer or resale fees.
- Private mortgage insurance. Not a closing fee in most cases, but can affect your monthly payment if your down payment is under 20 percent. Some loan products collect an upfront premium.
New York and Erie County specifics
- State transfer tax. Budget for 0.4 percent of the purchase price paid at closing per New York rules.
- Mansion tax. If your purchase price is 1,000,000 dollars or more, plan for an additional 1 percent.
- Mortgage recording tax and recording fees. These apply when you finance the purchase and vary by county. Confirm the rate and who pays in your specific transaction with your lender, attorney, and the Erie County Clerk.
- Local custom. In New York, who pays certain title charges or the owner’s policy can be negotiable. Your attorney and agent will help align the contract with local practice.
Sample budget scenarios for Cheektowaga buyers
These are illustrative only. Use your lender’s Loan Estimate and Closing Disclosure and your title company’s statement for exact figures.
Example 1: Purchase price 150,000 dollars
- 2 percent scenario: about 3,000 dollars total closing costs.
- 3 percent scenario: about 4,500 dollars.
Possible 3 percent composition, about 4,500 dollars:
- Appraisal, credit report, processing: about 600 dollars
- Title search and insurance: about 1,200 dollars
- Recording and transfer fees, small taxes: about 800 dollars
- Prepaids and escrow cushions: about 1,200 to 1,500 dollars
- Attorney and settlement fees: about 200 to 400 dollars
Example 2: Purchase price 300,000 dollars
- 2 percent: about 6,000 dollars
- 3 percent: about 9,000 dollars
- 4 percent: about 12,000 dollars
Possible 3 percent composition, about 9,000 dollars:
- Lender fees and appraisal: about 800 to 1,200 dollars
- Title insurance and title charges: about 1,800 to 2,500 dollars
- State transfer tax at 0.4 percent: about 1,200 dollars
- Escrow prepaids including first-year insurance: about 3,000 to 4,000 dollars
- Inspections, survey, HOA items: about 300 to 1,000 dollars
Example 3: Purchase price 1,200,000 dollars
- State transfer tax at 0.4 percent: about 4,800 dollars
- Mansion tax at 1 percent: about 12,000 dollars
- Other fees scale with price, plus typical lender, title, recording, and escrow items
Timeline, documents, and how funds are delivered
Key disclosures and timing
- Loan Estimate. Your lender will send this within three business days of your mortgage application. It outlines expected closing costs.
- Closing Disclosure. You will receive this at least three business days before closing. It is the final accounting of cash due. If certain terms change, re-disclosure may be required and could delay closing.
- Settlement statement. The title company or attorney provides a closing statement that should match the lender’s figures. Review both and ask questions right away.
How you will send funds
- Most closings require a wire transfer or a bank cashier’s check for the exact amount due. Personal checks are usually not accepted for the final balance.
- Always verify wiring instructions by phone using a trusted number from your lender or title company. Wire fraud is a real risk. Do not rely on email instructions alone.
What to bring to closing
- Government-issued ID for all buyers signing
- Proof of homeowner’s insurance with the lender listed as mortgagee
- Certified funds or wire confirmation, as directed by the title company
- Any final documents your lender requested
- Contact info for your lender, attorney, title company, and agent
Ways to reduce or plan your costs
- Compare loan estimates. Ask lenders to explain origination fees, points, and any application or underwriting charges.
- Ask early for a preliminary title fee and recording estimate. Your title company or attorney can quote local premiums and Erie County recording charges.
- Clarify escrow requirements. Request the expected number of months for tax and insurance reserves.
- Negotiate seller concessions. You can request a seller credit to offset closing costs, subject to loan limits and market conditions.
- Time your closing date. Closing late in the month can reduce prepaid interest for that month.
- Explore first-time buyer options. Programs through New York agencies, including down payment and closing cost assistance, may reduce upfront cash if you qualify.
- Work with a local attorney and a local agent. They will keep New York specific items, such as the state transfer tax and mortgage recording tax, on your radar and confirm responsibilities in your contract.
Your next step
If you want clear numbers for your price point and loan type, I can help you coordinate early estimates with your lender, attorney, and title company so you know exactly what to bring to the table. Ready to plan your Cheektowaga purchase with confidence? Let’s connect. Reach out to Jeffrey Buchholz to get started today.
FAQs
How much cash should I plan for Cheektowaga buyer closing costs on a typical home?
- A practical planning range is about 2 to 4 percent of the purchase price, with the exact amount driven by your loan, title premiums, taxes, and escrow requirements.
What New York taxes might affect my Cheektowaga closing?
- New York’s state transfer tax is 0.4 percent of the price, and a 1 percent mansion tax applies to purchases of 1,000,000 dollars or more; mortgage recording tax also applies when you finance.
What are prepaids and escrow deposits at closing?
- These are funds collected upfront for your first year of homeowner’s insurance, 2 to 3 months of tax and insurance reserves, and prepaid interest from closing to month end.
Are closing costs negotiable in Cheektowaga?
- Some items are negotiable, such as seller credits and who pays certain title charges; lender fees may vary by lender, so compare quotes and discuss options with your attorney and agent.
When will I know my final amount due at closing?
- Your lender must deliver a Closing Disclosure at least three business days before closing, and your title company will provide a matching closing statement showing your exact cash to close.
Can first-time buyer programs help with closing costs in Erie County?
- Yes, state-supported programs may offer down payment and closing cost assistance for eligible buyers; ask your lender and agent to review options and qualifications early.
How do I deliver funds on closing day in Cheektowaga?
- Most title companies require a wire transfer or a bank cashier’s check; always verify wiring instructions by phone using a trusted number to avoid fraud.
