Wondering how much cash you’ll need at closing in Nassau County beyond your down payment? You’re not alone. Between state taxes, lender fees, title charges, and property tax escrows, the numbers can feel unclear until you see them itemized. In this guide, you’ll learn what typical buyer closing costs include, the Nassau County factors that influence them, how to build a reliable estimate, and what to expect before you get the keys. Let’s dive in.
What closing costs cover
Closing costs are the out-of-pocket expenses you pay to complete your purchase. Some items are standard, while others depend on your loan, property type, and contract terms. Always confirm who pays what in your contract since customs can vary by deal.
Taxes and state fees
- New York State real estate transfer tax applies to most sales. Your attorney or title company will confirm the rate for your transaction through the New York State Department of Taxation and Finance.
- The New York State mansion tax is 1% of the purchase price on homes at $1,000,000 or more, typically paid at closing. You can verify details with the Department of Taxation and Finance.
Lender fees
- Origination or application fee for processing your loan.
- Optional discount points if you choose to pay prepaid interest to lower your rate.
- Appraisal fee, plus credit report, underwriting, flood certification, and processing charges.
Title and recording
- Title search and title insurance premiums for owner’s and lender’s policies. Premiums are regulated in New York. For rules and rates, consult the New York State Department of Financial Services.
- Settlement or closing fee charged by the title agent or closing attorney.
- Recording fees charged by the county to record the deed and mortgage. Check the Nassau County Clerk for current recording requirements and fee schedules.
Attorney fees
In New York it is common for buyers to have an attorney review contracts, resolve title issues, and attend closing. Costs vary by firm and complexity.
Prepaids and escrows
- First-year homeowner’s insurance premium or policy deposit.
- Prepaid mortgage interest from your closing date to your first payment.
- Escrow reserves for taxes and insurance. Lenders often collect 1 to 6 months up front, and the exact amount depends on the lender’s policy and local tax billing cycles.
Property-type or association items
- Condos and HOAs may collect the first month’s dues or reserves at closing.
- Co-ops can include application fees, board interview fees, move-in fees, and possible flip taxes. Co-op closings require board approval, which can add time and cost.
Local due diligence and admin
- Survey, municipal certificates, water or sewer confirmations, and payoff of any municipal liens.
- Courier, wire, and document processing fees.
Nassau County factors to watch
- Property taxes: Nassau County property taxes are relatively high compared with national averages. Higher annual taxes often increase the escrow reserves your lender requires at closing, which can add thousands to your cash to close.
- School district differences: School district taxes are a large part of total property taxes and vary by address. Your escrow cushion can change based on where the home is located.
- Property mix: While single-family homes are common, certain areas have more condos and co-ops near rail lines and village centers. Co-ops, in particular, add application steps and fees.
- Closing customs: Attorneys and title companies both play active roles. Confirm early whether your closing will be conducted primarily by an attorney or a title agent so you know where to direct questions.
How much to budget
A common planning range for buyer closing costs is roughly 2% to 5% of the purchase price. On Long Island, buyers more often land toward the upper end due to state closing items and higher tax escrows. Your total can be higher or lower based on loan type, price point, and timing of tax bills.
Here are simple planning frameworks:
- Lower-end planning: Closing costs about 2% of price plus 1% to 3% for prepaids and escrows. Total around 3% to 5% of price, excluding down payment.
- Higher-tax Long Island planning: Closing costs and fees about 2% to 4% plus 2% to 6% for prepaids and escrows. Total around 4% to 10% of price, excluding down payment.
Illustrative estimates
These examples are for planning only. Always request written fee quotes and a Loan Estimate from your lender.
Example at $600,000 purchase price (no mansion tax):
- Closing fees and title: about 2% to 4% = $12,000 to $24,000.
- Prepaids and escrows: about 2% to 6% = $12,000 to $36,000.
- Total cash needed for closing costs and prepaids: about $24,000 to $60,000.
Example at $1,200,000 purchase price (mansion tax applies):
- Mansion tax: 1% = $12,000.
- Closing fees and title: about 2% to 4% = $24,000 to $48,000.
- Prepaids and escrows: about 2% to 6% = $24,000 to $72,000.
- Total cash needed for closing costs and prepaids: about $60,000 to $132,000.
Your numbers will depend on your loan amount, any points paid, exact title premiums, recording fees, attorney fee, property taxes, and whether you secure any seller concessions.
Build your itemized estimate
Use this step-by-step to get a clear picture early:
Get lender fees. After you apply, your lender must provide a Loan Estimate within 3 business days. See the CFPB’s Loan Estimate guide. Include origination, points, appraisal, credit report, and other lender charges.
Add third-party reports. Confirm appraisal timing and cost. Inspections are usually paid outside closing but add them to your budget.
Quote title and settlement. Ask the title company for a premium and fee quote based on your price and loan amount. Title insurance is regulated in New York. For background, review the NYS Department of Financial Services.
Confirm attorney fees. Request a written fee quote for contract review, title review, and attendance at closing.
Check recording charges. Your title company or attorney will estimate recording fees. You can also verify requirements with the Nassau County Clerk.
Calculate prepaids and escrows. Ask your lender how many months of property taxes and insurance they will collect at closing and how they calculate prepaid interest.
Add property-specific items. Include condo or co-op fees, estoppels, move-in costs, and any municipal certificates.
Result: an estimated cash-to-close number for costs and prepaids, separate from your down payment.
Who does what at closing
- Lender: Finalizes your loan approval and provides a Closing Disclosure at least 3 business days before closing. The CFPB’s Closing Disclosure overview explains what to look for.
- Title company or agent: Performs the title search, issues title insurance, and prepares the settlement statement.
- Buyer’s attorney: Reviews the contract and title, negotiates changes, advises on documents, and helps you avoid wire fraud.
- Seller’s attorney and listing agent: Coordinate seller documents, payoffs, and tax prorations.
Timeline, funds, and what to bring
- Key timing: Loan Estimate within 3 business days of application and Closing Disclosure at least 3 business days before consummation of the mortgage.
- Funds to close: Most title companies require a verified wire or certified/cashier’s check. Confirm acceptable methods and daily wire deadlines several days before closing.
- Bring to closing: Government-issued photo ID, proof of homeowners insurance binder naming your lender, and any documents your lender or title company requests.
Wire safety checklist
Real estate wire fraud is a real risk. Protect yourself with these steps and review guidance from the Federal Trade Commission:
- Verify wiring instructions by phone using a trusted number, not an emailed phone number.
- Confirm the account name and routing details match the title or attorney escrow account.
- Send a small test wire if your title company allows it and confirm receipt before wiring the full balance.
Pro tips to avoid surprises
- Ask your lender early for a detailed estimate of escrow reserves based on your property’s tax schedule.
- Request an itemized title quote and your attorney’s fee quote as soon as your contract is accepted.
- Compare your Closing Disclosure to your original Loan Estimate and ask about any differences right away.
- If you are buying a condo or co-op, request a complete list of building fees and any flip tax up front.
Ready for guidance tailored to you?
A clear closing plan turns stress into confidence. If you want help estimating your cash to close, understanding escrow timing by town or school district, or navigating condo and co-op fees, our team is here for you. Schedule a free consultation with Yadlynd Cherubin to review your numbers and next steps.
FAQs
Who typically pays for title insurance in New York?
- Practices vary by contract and local custom, but buyers often pay for the lender’s title policy and may also pay for the owner’s policy; confirm responsibilities in your contract.
Can a Nassau County seller pay some of my closing costs?
- Yes, you can request seller concessions, but the amount may be limited by your loan program and the market; your attorney and lender can confirm caps.
How do co-ops and condos affect buyer costs?
- Co-ops often add application, board, and move-in fees and may include a flip tax; condos can have estoppel and document fees and sometimes different lender or title requirements.
When will I know my final cash to close?
- Your lender must provide the Closing Disclosure at least 3 business days before closing and it shows your final costs and funds to bring.
What is the New York mansion tax?
- New York State charges a 1% tax on residential purchases of $1,000,000 or more that is typically due at closing; verify details with the Department of Taxation and Finance.
Why are escrow deposits so high in Nassau County?
- Property taxes in many Nassau communities are relatively high, so lenders often collect several months of taxes and insurance up front to set up your escrow account.
How can I avoid wire fraud during my closing?
- Confirm wire instructions by phone using a trusted number and follow the title company or attorney’s security steps; never rely solely on emailed instructions.
