Most homebuyers spend months thinking about two numbers: the purchase price and the monthly mortgage payment.

Then closing day approaches, and a third number enters the chat.

Closing costs.

It’s a bit like ordering a steak dinner and discovering that appetizers, dessert, and drinks were not included in the menu price. The steak may still be worth every penny, but it’s nice to know the full bill before it arrives.

In New York, closing costs can be substantial, especially when taxes enter the picture. The good news is that none of these costs are secret. With proper planning, buyers can avoid the last-minute sticker shock that sometimes turns excitement into panic.

Meet the Taxes

Let’s start with the taxes that tend to surprise buyers.

The first is the mortgage recording tax, a uniquely New York expense paid by most buyers who finance their purchase. Depending on the size of the loan and the property’s location, this tax can easily reach several thousand dollars.

Then there’s the mansion tax, which applies to residential purchases of $1 million or more. Despite its name, the tax does not require a moat, a ballroom, or a butler. In many parts of New York, a perfectly ordinary apartment can trigger it.

For example, a buyer purchasing a $1.2 million condo will generally owe a 1% mansion tax, or $12,000, at closing. That’s real money, and it’s often overlooked until late in the transaction.

Transfer taxes also appear on most transactions, although these are typically paid by the seller rather than the buyer.

The Costs Beyond Taxes

Taxes get the headlines, but they’re only part of the story.

Attorney fees, lender charges, appraisal costs, title insurance premiums, recording fees, and prepaid taxes and insurance all contribute to the final amount due at closing. Individually, many of these charges seem manageable. Together, they can add up to tens of thousands of dollars.

Consider a buyer purchasing an $800,000 home with financing. In addition to the down payment, they may face mortgage tax, legal fees, lender charges, title costs, and various government recording fees. None of these expenses are unusual. What catches buyers off guard is when they haven’t budgeted for them in advance.

The Smartest Move You Can Make

The best time to understand closing costs is before making an offer, not a week before closing.

An experienced lender can provide realistic estimates for financing costs. A knowledgeable attorney can explain legal expenses. A trusted NY title company can help buyers understand title insurance, recording fees, and other transaction-related costs long before they become surprises.

The earlier your team is involved, the more accurate your budgeting becomes.

Why Cornerstone

At Cornerstone, we’ve guided buyers through more than 17,000 transactions, helping them understand not just what they owe at closing, but why. Because title insurance rates are regulated in New York, buyers generally pay similar premiums regardless of which title company they choose. That’s why service, communication, and expertise matter.

The earlier we’re involved, the more we can help you anticipate costs, avoid surprises, and move toward closing day with confidence.

After all, buying a home is expensive enough. Confusion shouldn’t add to the bill.