Buying in Amherst and wondering what your closing costs will look like? You are not alone. Even experienced buyers can be surprised by lender fees, title charges, taxes, and prepaids that show up at the closing table. This guide breaks down each cost, shows realistic Amherst examples, and gives you a simple worksheet to estimate your cash to close with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaid items you pay to finalize your mortgage and transfer ownership. They do not include your down payment. Typical buyer costs cover lender fees, title search and insurance, government recording and tax charges, surveys and inspections, and prepaids like property taxes and homeowner’s insurance.
Typical Amherst ranges
Across the U.S., buyer closing costs often total about 2% to 5% of the purchase price, not including your down payment. When you add prepaids and initial escrow deposits, your cash to close can land closer to 3% to 6%. In Amherst and Erie County, local property taxes and escrow requirements can push totals up or down. Treat these as ranges, not exact quotes.
Lender fees you may see
Lenders list their charges on your Loan Estimate and Closing Disclosure. Common items include:
- Origination or processing fees: Sometimes shown as a percentage of the loan, often 0.25% to 1.00%, or as flat fees.
- Appraisal: About $400 to $900 for a standard single-family home, with higher fees for complex properties.
- Credit report: Typically $25 to $50.
- Flood certification: About $10 to $25.
- Mortgage broker fee: If applicable, varies by lender and structure.
- Prepaid interest: Interest from your closing date to your first payment.
- Discount points: Optional. One point equals 1% of the loan amount and may reduce your rate.
You can shop lenders and compare Loan Estimates side by side. You can also verify any lender or broker license using NMLS Consumer Access.
Title and settlement services
Title professionals research the public record, insure against covered title defects, and host the closing.
- Title search and settlement: Often a few hundred dollars for exam and closing services.
- Lender’s title insurance: One-time premium based on your loan amount. In New York, title premiums are regulated and can be a meaningful single charge, commonly in the range of about 0.2% to 0.6% of the purchase price for the lender policy.
- Owner’s title insurance: Optional but widely chosen. It protects your ownership. In many New York transactions the buyer purchases this policy, though it can be negotiated.
- Settlement agent or attorney: Many New York buyers use an attorney. Fees vary from a few hundred dollars to $1,000 or more based on complexity.
Taxes and local charges
New York has several government-related costs to be aware of:
- Mortgage recording tax: This tax is tied to the mortgage you record. Buyers commonly pay it in New York purchases. The exact Erie County rate and any exemptions can change. Confirm the current rules with the New York State Department of Taxation and Finance and the Erie County Clerk.
- Recording fees: Erie County charges to record your deed and mortgage. These are usually modest fixed fees. Check current amounts with the Erie County Clerk.
- Transfer tax: New York State and some localities impose transfer taxes. In many markets the seller pays, but practices vary. Your attorney or agent will confirm what is customary in Amherst and what is negotiable.
Prepaids and escrow deposits
These items often create the biggest swing in your cash to close.
- Property taxes: Your lender may require an initial escrow deposit, often equal to about two months of the estimated annual tax, but this depends on the tax schedule and lender policy.
- Homeowner’s insurance: Lenders typically require you to pay the first year’s premium at closing or start an escrow with an initial deposit, often around two months of premium.
- Mortgage insurance (PMI): If you put less than 20% down on a conventional loan, you may pay an initial amount or your first month’s PMI at closing.
- HOA or condo dues: If applicable, some associations require prepaid dues or transfer fees.
For local tax rates, billing dates, and how escrow amounts are set, contact the Town of Amherst Assessor and Tax Collector and speak with your lender.
Other one-time costs
A few additional items often show up on buyer side:
- Home inspection: About $300 to $600 for a typical single-family home.
- Pest inspection: Often $75 to $200.
- Survey: About $300 to $800 if required by the lender or title company.
- Wire or courier: Usually $25 to $75.
- Notary and document prep: Small fees that vary.
Amherst example estimates
Below are illustrative ranges to help you plan. Your actual numbers depend on your loan product, rate, tax amounts, title premiums, and any credits negotiated with the seller or lender.
Example A: Amherst starter home
Assumptions: Purchase price $250,000; 20% down; standard fees.
- Lender fees, appraisal, credit, processing: $1,500 to $4,000
- Title, recording, attorney, lender’s title policy: $1,200 to $3,000
- Prepaids and escrows (first-year insurance, two months of escrows, prepaid interest, tax escrow): $2,000 to $5,000
- Other (inspection, survey, wire): $600 to $1,500
Estimated buyer closing costs excluding down payment: about $5,000 to $13,500, roughly 2% to 5.4% of price.
Example B: Move-up Amherst home
Assumptions: Purchase price $400,000; 20% down; proportionally similar fees.
- Estimated buyer closing costs excluding down payment: about $8,000 to $22,000, roughly 2% to 5.5% of price.
These ranges are for planning only. Your Loan Estimate and Closing Disclosure will show your specific costs, including any mortgage recording tax and exact escrow amounts.
Simple worksheet
Use this checklist to build your estimate. Total each section, then calculate cash to close at the end.
Property and loan basics
- Purchase price:
- Down payment (amount and %):
- Loan amount (price minus down payment):
Lender charges (estimate)
- Loan origination or points:
- Application fee:
- Appraisal:
- Credit report:
- Flood certification:
- Other lender fees:
- Subtotal lender fees:
Title and closing charges
- Title search and exam:
- Lender’s title insurance:
- Owner’s title insurance:
- Settlement or attorney fee:
- Recording fees:
- Subtotal title and closing:
Prepaids and escrows
- Prepaid interest (estimate):
- First-year homeowner’s insurance premium:
- Initial property tax escrow deposit:
- Initial homeowner’s insurance escrow deposit:
- Mortgage insurance (PMI) initial amount:
- HOA dues or transfer:
- Subtotal prepaids and escrows:
Other fees
- Home inspection:
- Survey:
- Pest inspection:
- Wire or courier:
- Miscellaneous:
- Subtotal other:
Credits and adjustments
- Seller credits:
- Lender credits:
- Earnest money deposit:
Totals
- Total estimated closing costs (sum of all subtotals):
- Cash to close = Down payment + Total estimated closing costs − Earnest money − Seller and lender credits
Note: This worksheet is an estimate. Your lender must issue a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing.
How to lower costs
You have options to keep cash to close in check:
- Compare lenders: Shop at least two Loan Estimates. Ask about rate, points, and lender credits.
- Evaluate discount points: Buy points only if the break-even period fits your plans.
- Compare title and attorney fees: Some services are shoppable. Ask for quotes early.
- Negotiate credits: You can request seller concessions, subject to lender limits.
- Consider optional items: Waive nonrequired services only when prudent.
You can verify fee explanations on your Loan Estimate and Closing Disclosure. If something is unclear, ask your lender or title company for an itemized explanation. The Consumer Financial Protection Bureau provides helpful overviews of the timing rules and sample forms.
Timing and disclosures
Federal rules protect you during the mortgage process:
- Loan Estimate: Within three business days after you apply, your lender must send an LE that outlines your rate, payment, and projected closing costs.
- Closing Disclosure: At least three business days before closing, you must receive a CD that shows your final numbers. If certain costs change beyond allowed tolerances, your lender must redisclose, which may delay closing.
Review both documents carefully and compare them side by side. Ask about any differences.
Local checks and resources
Because taxes and recording charges can change, confirm the latest details with official sources and your closing team:
- Mortgage recording tax and exemptions: New York State Department of Taxation and Finance
- Deed and mortgage recording fees, procedures: Erie County Clerk
- Amherst property tax rates and billing schedule: Town of Amherst Assessor and Tax Collector
- Consumer disclosures and mortgage timelines: Consumer Financial Protection Bureau
- Verify lender and broker licensing: NMLS Consumer Access
If you want clarity on what is customary in Amherst for who pays which fees, your attorney or local REALTOR association can explain typical allocations and what can be negotiated.
Quick glossary
- Mortgage recording tax: A New York tax charged when a mortgage is recorded. Often paid by the buyer in purchases. Rates vary by county and may include state and local components.
- Owner’s title policy: Optional coverage that protects your ownership against certain covered title defects, subject to policy terms.
- Prepaid interest: Mortgage interest from your closing date up to your first regular payment.
- Escrow deposit: Money your lender holds to pay property taxes and insurance when due.
If you are planning a move in Amherst or nearby Western New York suburbs and want a clear, local estimate of your cash to close, reach out for a tailored walkthrough and current figures.
Ready to map out your numbers and timeline? Schedule a free consultation with Unknown Company and get a personalized closing cost estimate for your Amherst purchase.
FAQs
Who pays title insurance in Amherst, NY?
- Practices vary. Lenders usually require a lender’s title policy paid by the buyer. An owner’s policy is optional but common in New York. Final allocation can be negotiated with guidance from your attorney.
Is the mortgage recording tax paid by the buyer in Erie County?
- In many New York purchases, the buyer pays the mortgage recording tax because it is tied to the mortgage being recorded. Confirm current Erie County rates and any exemptions with your lender, attorney, the New York State Department of Taxation and Finance, or the Erie County Clerk.
Can I roll my closing costs into the loan?
- Some lender fees may be financed if your loan program allows it. Prepaids and escrow deposits are usually not financeable and must be paid at closing.
How can I reduce closing costs on an Amherst home?
- Shop lenders and compare Loan Estimates, request lender credits, negotiate seller concessions within program limits, consider discount points only if the math works, and compare title and attorney quotes for shoppable services.
When will I know my final numbers before closing?
- Your lender must send your Closing Disclosure at least three business days before closing. Review it against your Loan Estimate and ask for explanations of any changes.
