With the housing market varying so much across the country, many people assume that mortgage interest rates vary greatly from state-to-state as well. While there may be slight variations in mortgage interest rates, they are generally the same. Consequently, New York mortgage rates are as competitive as those in any other state.

There can be, however, significant differences in closing costs and procedures across the nation. So, when you apply for your mortgage, don’t forget to factor in closing costs or your hard work to find a competitive New York mortgage rate may be tempered by unforeseen closing costs.

What Closing Is

Before you try to discern the differences in closing costs, you must first understand what “closing” is. Closing is the final step before you take ownership of your home. During the closing, you will sign mortgage loan documents, transfer funds (escrow, insurance, etc…), and receive the deed to your property.

Closing Costs

Because of different closing procedures and high title insurance costs, New York closing costs—at nearly $4,000 –are the highest in the nation. Typically, closing costs cover the following items:
o Lender Fee
o Title Insurance
o Title Search Fee
o State Mortgage Taxes
o Settlement Charge
o Escrow
o Settlement or Closing Fee
o Attorney’s Fee
o Flood Insurance Fee
o Home Warranty Fee
o Home Inspection Fee
o Survey Fee
o Notary Fee
o Recording Fee
o Interest
o Lender Fees/Charges

Closing in New York

Closing procedures vary as much as closing costs. Whether you are a first-time homeowner—or a newcomer to New York, knowing what to expect at closing will make the process much easier and less stressful when, for instance, you buy Manhattan commercial office space.

In New York—unlike most states—attorneys for each party must be present at closing. Buyers generally pay most closing costs, including all title insurance fees and mortgage fees. Expect the seller to pay the state and city transfer taxes. Moreover, make sure to find out when your property taxes will be due, as this varies across the state.

No matter what state you buy your home in, having a general idea of the closing costs and procedures specific to your area will ensure that you are well prepared for the final step in purchasing your home. Remember, you spent a great deal of time finding the best mortgage rates in New York. Don’t let unexpected closing costs ruin what can be a gratifying and rewarding experience—buying your home.