Are closing costs in White Plains catching you by surprise? You are not alone. Between lender fees, title charges, taxes, and escrows, the numbers can feel confusing when you are trying to finalize your budget. This guide breaks down what you will pay, local customs in Westchester County, and smart ways to lower your cash to close. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepaid items you pay when you buy a home. They typically include:
- Lender charges for processing and underwriting your loan
- Third-party services like appraisal, inspection, and title work
- Government taxes and recording fees
- Prepaid items and escrows for homeowners insurance, property taxes, and daily interest
Some costs are actual fees. Others are deposits into an escrow account so your lender can pay taxes and insurance on schedule.
How much to budget in White Plains
A common planning range for buyers is about 2% to 5% of the purchase price in closing costs, not including your down payment. In Westchester, buyers often land toward the higher end of that range because of state and local taxes, title and attorney fees, and higher home values.
Illustrative example only: if you buy at $700,000, 2% to 4% equals roughly $14,000 to $28,000 in closing costs. Your actual number depends on your loan type, lender pricing, negotiated credits, and local taxes and fees. Always rely on your lender’s Loan Estimate and your final Closing Disclosure for your exact figures.
Typical buyer costs, line by line
Lender-related fees
- Origination, processing, underwriting: You pay the lender to make and manage the loan. This may appear as a percentage of the loan amount or flat fees.
- Discount points: Optional. One point equals 1% of your loan amount and can lower your interest rate. Buyers or sellers can pay points by agreement.
- Application and credit report: Usually $25 to $75.
- Appraisal: Commonly about $450 to $900 in Westchester, depending on complexity.
- Mortgage insurance: If your down payment is under 20%, you may have private mortgage insurance. Some programs, like FHA, include an upfront mortgage insurance premium that can be financed or paid at closing.
Title and settlement
- Title search and closing agent fee: Several hundred dollars for research, document prep, and closing coordination.
- Title insurance: Two policies are typical. The owner’s policy protects your ownership. The lender’s policy protects the lender. New York uses published premium schedules, and the cost scales with price. Expect this to be a meaningful line item. Who pays the owner’s policy can vary by local custom and negotiation in Westchester.
- Settlement or escrow fee: Often several hundred dollars to handle funds and documents.
Attorney fees
In New York, both buyer and seller usually have attorneys. Buyer-side attorney fees in Westchester commonly range from about $800 to $2,000 or more based on complexity and property type.
Government taxes and recording
- State transfer tax: New York imposes a real estate transfer tax. It is often a seller cost, though allocation can be negotiated.
- Local or county transfer taxes: Some municipalities and counties add their own transfer charges. Confirm specifics with your attorney or title company.
- Recording fees: To record the deed and mortgage with the county clerk. Usually modest flat fees.
- Mortgage recording tax: New York charges this tax in many counties. Treatment varies by county and loan size. Confirm details with your lender and the Westchester County Clerk.
Prepaids and escrows
- Homeowners insurance: First year premium is typically paid at closing. Costs vary by coverage and property. For single-family homes in Westchester, many buyers see $800 to $2,000 or more.
- Property taxes: You will either reimburse the seller for your share or fund required escrow reserves. Lenders commonly collect 2 to 6 months of tax and insurance escrow at closing. Because Westchester property taxes are significant, this can be one of your largest line items.
- Prepaid interest: Daily interest from your closing date until your first payment.
- HOA or condo fees: Prorations and any initial reserve or move-in deposits.
Inspections and surveys
- Home inspection: Often $350 to $700 for a single-family home, with specialty inspections priced separately.
- Additional inspections: Radon, pest, septic, well, engineering, or lead-based paint as needed.
- Survey: Sometimes required by the lender or title. Cost can range from about $300 to over $1,000.
Other possible costs
- Condo and co-op items: Application and processing fees, move-in deposits, estoppel or certificate of status fees, and possible building transfer or flip fees.
- Miscellaneous: Courier or wire fees, overnight delivery, and notary charges.
Who typically pays what in Westchester
Local custom matters. In many Westchester transactions:
- Owner’s title insurance: It is customary in some downstate markets for the seller to pay this, but practice can vary within Westchester. Confirm with your attorney and title company for White Plains.
- Lender’s title policy: Buyer usually pays this.
- Transfer taxes: The New York State transfer tax is often a seller expense, but parties can negotiate. Local surcharges may apply.
- Attorneys: Each party pays their own attorney.
- Recording and mortgage-related fees: Buyers usually pay mortgage recording and related filing fees. Deed recording fees are often split or negotiated.
Condo and co-op transactions add building-specific fees. Ask early for a full fee schedule so you can plan.
How to lower your cash to close
You can often reduce upfront costs by using credits and rate strategies.
- Seller credits: Many loan programs allow seller-paid credits toward your closing costs. Conventional loans set limits that depend on your down payment. FHA typically allows up to 6% for permitted items. VA loans allow concessions within program rules. Your lender will confirm current limits for your loan type.
- Lender credits: You can accept a slightly higher interest rate in exchange for a lender credit that reduces your closing costs today.
- Discount points: Paying points raises your closing costs now but lowers your interest rate and monthly payment. Ask your lender to show the breakeven timeline.
- Temporary buydowns: A 2-1 buydown lowers your rate in year one by about 2% and year two by about 1%, then it returns to the note rate. The upfront cost can be paid by you or negotiated with the seller.
Always ask your lender to run side-by-side scenarios: one with a lower rate and points paid, and one with lender credits. Compare monthly payment, total interest, and your breakeven window based on how long you expect to keep the loan.
Timing and key documents
- Loan Estimate: You will receive this within three business days of your application. It outlines your estimated closing costs.
- Closing Disclosure: Your lender must provide this at least three business days before closing. Review every line and ask questions right away.
- Title commitment and exceptions: Your attorney will review and clear any items before closing.
- Seller’s statement: Confirms prorations for taxes, HOA dues, and utility adjustments.
Smart planning checklist
- Ask your lender for a sample Loan Estimate early for a White Plains property in your price range.
- Request a written estimate of title premiums, recording fees, and settlement charges from a Westchester title company.
- Confirm who pays the owner’s title policy for your transaction. Customs vary by property type and neighborhood.
- Prepare for escrow deposits. Westchester property taxes can make these reserves significant.
- Negotiate seller credits at the offer stage if you plan to use them.
- Verify acceptable funds for closing. Most closings require certified funds or a wire.
- Protect yourself from wire fraud. Always confirm wiring instructions by phone with the closing attorney using a known, verified number.
Example: a $700,000 White Plains purchase
This is for illustration only. Your numbers will differ.
- Lender fees and appraisal: about $2,000 to $7,000
- Title, settlement, and recording: about $1,500 to $5,000
- Buyer’s attorney: about $800 to $2,000+
- Prepaids and escrows: about $5,000 to $15,000
- Inspections and other items: about $500 to $2,000
Estimated closing costs: roughly $10,000 to $31,000, which is about 1.4% to 4.4% of a $700,000 purchase. Confirm the actual figures on your Loan Estimate and Closing Disclosure.
Protect your funds on closing day
Wire fraud is a real risk. Before sending any money, call your closing attorney using a phone number you already trust. Do not rely on wiring instructions sent by email without live verification. If anything looks off, stop and verify.
Your next step
If you want a clear, local estimate tailored to your price point, loan type, and whether you are buying a condo, co-op, or single-family home, ask your lender and closing attorney for itemized numbers early. If you are planning an offer in White Plains, you can also lean on a local advisor to model credits and rate options so you know exactly how much to bring to the table.
Have questions or want a step-by-step plan from offer to keys? Connect with Aileen Yambo for buyer guidance grounded in Westchester experience.
FAQs
What are typical closing costs for a $700,000 home in White Plains?
- Many buyers plan for about 2% to 5% of the purchase price, which would be roughly $14,000 to $28,000 for illustration, with actual amounts set by your Loan Estimate and Closing Disclosure.
Who pays for title insurance in Westchester County?
- The buyer usually pays the lender’s title policy, and the owner’s policy is often a seller expense in some downstate markets, but practice varies in Westchester and can be negotiated.
How do property tax escrows work for White Plains buyers?
- Your lender often collects 2 to 6 months of reserves at closing and uses those funds to pay future property taxes and insurance, which can make this a large line item locally.
Can seller credits cover prepaid items and discount points?
- Yes, within loan program limits, seller credits can cover permitted closing costs, prepaid escrows, and discount points, so confirm exact limits with your lender.
What is the mortgage recording tax in Westchester?
- New York imposes a mortgage recording tax in many counties, including Westchester, and the amount depends on loan size and local rules, so confirm the exact figure with your lender and county clerk.
Do I need a New York attorney to buy in White Plains?
- It is common and advisable for both buyers and sellers to use attorneys in New York, and buyer attorney fees in Westchester often range from about $800 to $2,000 or more depending on complexity.
How can I avoid wire fraud during my closing?
- Always verify wiring instructions by calling your closing attorney at a known phone number, and never rely on emailed instructions without live confirmation.
