Buying a home in Oyster Bay is exciting, but the closing cost line items can feel like alphabet soup. You want a clear picture of what you will pay, why each cost exists, and how to plan for it. In this guide, you will learn the typical fees for Nassau County, how New York’s taxes apply, and smart steps to keep surprises off your final Closing Disclosure. Let’s dive in.
What closing costs cover in Oyster Bay
Closing costs are the one-time fees and prepaids due at settlement in addition to your down payment. In Oyster Bay and across Nassau County, they usually fall into a few buckets.
Loan and lender fees
These are charged by your mortgage lender. You will see some or all of the following:
- Origination or application fee: Often 0.5% to 1.5% of the loan amount, or a flat $500 to $1,500.
- Discount points: Optional prepaid interest to lower your rate. Typically 0 to 2 points, where 1 point equals 1% of the loan amount.
- Appraisal: Independent valuation, generally $350 to $900.
- Credit report: Usually $25 to $75.
- Underwriting, processing, document prep: Often $200 to $1,000 combined.
- Flood cert, tax service, or HOA data pulls: If applicable, usually $25 to $200 each.
Title and settlement
These protect your ownership and ensure a clean transfer.
- Title search and exam: Commonly a buyer cost in New York, often $150 to $400.
- Owner’s title insurance: One-time premium that protects your ownership. Who pays varies by local custom and contract.
- Lender’s title insurance: Required by most lenders, typically paid by the buyer and based on the loan amount.
- Settlement or closing fee: Often $250 to $600.
- Attorney fees: In New York, buyers typically hire an attorney. Expect roughly $800 to $2,000 or more depending on complexity.
- Recording fees and mortgage recording tax: Deed and mortgage recording fees are modest, but the mortgage recording tax can be significant and is usually paid by the buyer.
New York taxes you may see
New York has several transaction-level taxes that affect your budget.
- New York State Real Estate Transfer Tax: Often paid by the seller. Customs can vary by deal and should be confirmed in your contract.
- Mansion tax: Paid by the buyer on homes priced at $1,000,000 or more. The typical rate at that threshold is 1% of the purchase price.
- Mortgage recording tax: Applied when you record a mortgage in Nassau County. Typically paid by the borrower and disclosed by your lender.
Insurance, prepaids, and escrows
Lenders want certain costs paid in advance and may collect reserves.
- Homeowner’s insurance: First-year premium due at closing. On Long Island, expect roughly $700 to $3,000+ based on the home and coverage.
- Flood insurance: Required if the home is in a Special Flood Hazard Area and financed by a regulated lender. Premiums vary widely and can be several thousand dollars per year.
- Property tax prorations and escrow: You will settle prorated taxes with the seller. Your lender may also collect an initial escrow cushion, often at least 2 months of taxes and insurance.
- Prepaid interest: Covers interest from funding through the end of the month.
Inspections and survey
These help you understand the property and its boundaries.
- Home inspection: Commonly $300 to $800, higher for large or older homes.
- Pest or termite inspection: Often $75 to $300 if required.
- Survey: May be required by title, typically $400 to $1,500+ depending on lot size and complexity.
Condo and co-op fees
If you are buying an apartment, plan for building-related charges.
- Condo or HOA move-in and application fees: Move-in fees and estoppel or certificate fees often range from $100 to $500+.
- Co-op board application and processing: Several hundred dollars is common. Flip taxes and transfer fees, if any, vary and are set by the building.
How much to budget
A practical planning range for buyers is often 2% to 5% of the purchase price, excluding your down payment. Where you land depends on your loan size, whether you pay points, the presence of mortgage recording tax, any mansion tax, insurance needs, and required escrow deposits.
- Example A: $500,000 purchase, 20% down, $400,000 loan. A ballpark of 2.0% to 3.5% suggests about $10,000 to $17,500 in closing costs.
- Example B: $1,200,000 purchase, 20% down, $960,000 loan. A ballpark of 2.5% to 5.5% suggests about $30,000 to $66,000 in closing costs.
These are estimates. Your lender, title company, and attorney will give exact figures for your specific address and contract terms.
Nassau County factors that change your costs
Property taxes and escrows
Nassau County has comparatively high property taxes, which can increase your prorations and your lender’s initial escrow requirements. Ask for the current year tax bill and the tax calendar to understand how your closing date affects what you will deposit.
Flood risk on the North Shore
Parts of Oyster Bay include waterfront and low-lying areas that may fall within FEMA flood zones. If your home is in a Special Flood Hazard Area, your lender will require flood insurance. Request quotes early and ask whether an elevation certificate is available to help refine pricing.
Septic, sewer, and local certificates
Depending on the property and municipality, you may encounter septic inspections, sewer connection fees, or occupancy certificate requirements. These items can add steps and costs, so confirm with the Town of Oyster Bay Building Department and your attorney.
Co-op, condo, and single-family differences
Co-ops and condos add building-specific fees, applications, and potential move-in charges. Co-ops may also have flip taxes. Single-family homes rarely have board applications, but can require surveys, additional inspections, and larger insurance policies based on size and location.
Who typically pays what in New York
Customs can vary by contract and by property type, but here is what buyers often handle in New York transactions:
- Buyer: lender fees, appraisal, credit report, most processing fees, lender’s title insurance, mortgage recording tax, buyer’s attorney fee, inspections, homeowner’s insurance, flood insurance if required, prepaid interest, and initial escrows.
- Seller: real estate broker commissions. Sellers often handle transfer taxes in New York, and in some deals may cover the owner’s title policy. These items are negotiable and should be confirmed in your contract.
Always rely on your signed contract and your Closing Disclosure for final responsibilities and amounts.
Timeline and documents to compare
- Loan Estimate: You should receive this within three business days of your loan application. Use it to compare lender fees and structure.
- Closing Disclosure: This must be delivered at least three business days before closing. Compare it to your Loan Estimate and ask about any differences.
- Title commitment and quotes: Request early so you can see the owner’s and lender’s title premiums and any requirements.
- Local tax schedule and proration: Review with your attorney and title company so you understand what you will owe at settlement.
Step-by-step checklist to control your numbers
- Request Loan Estimates from multiple lenders and compare origination fees, points, and third-party charges.
- Ask a title company for a written quote for title insurance premiums, settlement fees, and recording taxes for Nassau County.
- Confirm whether your purchase price triggers the mansion tax at $1,000,000 and budget 1% on the buyer side if applicable.
- Verify the mortgage recording tax for Nassau County with your lender and how it will appear on your Closing Disclosure.
- Obtain the current property tax bill and calendar for the home and confirm prorations based on your closing date.
- Check the property’s flood zone status. If in a Special Flood Hazard Area, get flood insurance quotes and ask about an elevation certificate.
- Budget for home inspection, termite inspection if needed, first-year homeowner’s insurance, and initial escrow deposits.
- For condos and co-ops, request association documents, any estoppel or certificate fees, move-in fees, and note any special assessments.
- Get a written closing cost estimate from your title company and compare it to your Closing Disclosure. Ask for explanations of anything unfamiliar.
Simple scenario walkthroughs
Scenario 1: $500,000 single-family home
You put 20% down and finance $400,000. You skip points, the property is not in a flood zone, and there is no mansion tax. You might land near the lower half of the 2.0% to 3.5% range, which could include lender fees, appraisal, title and settlement, attorney, recording, inspection, homeowner’s insurance, and prepaid escrows.
Scenario 2: $1,200,000 home in a coastal area
You put 20% down and finance $960,000. This price triggers the 1% mansion tax. Mortgage recording tax scales with the loan size, and flood insurance may be required if the property is in a Special Flood Hazard Area. It is common for these factors to push you toward the higher end of the 2.5% to 5.5% range.
Tips to reduce or manage closing costs
- Shop lenders and compare rate-and-fee combinations. Sometimes a slightly higher rate covers more costs upfront.
- Ask about lender credits, and compare scenarios with and without points.
- Time your closing date later in the month to reduce prepaid interest days.
- Confirm flood zone status early and obtain multiple homeowner’s and flood insurance quotes.
- Request title quotes from reputable local title companies and understand what is included.
- Negotiate seller credits where appropriate and confirm any cost shifts in the contract.
Ready to run the numbers for your Oyster Bay purchase?
You do not need to decode this alone. With financial rigor and local insight, the Farber Locke Team helps you model total cash to close, coordinate title and attorney timelines, and anticipate Nassau County specifics like taxes, escrows, and flood considerations. If you are planning a purchase on the North Shore, reach out to the Farber Locke Team for clear guidance and next steps.
FAQs
What closing costs do Oyster Bay buyers usually pay?
- Buyers commonly pay lender fees, appraisal, credit report, lender’s title insurance, mortgage recording tax, buyer’s attorney, inspections, homeowner’s insurance, prepaid interest, and initial escrow deposits.
How much are total buyer closing costs in Nassau County?
- A practical range is about 2% to 5% of the purchase price, with higher amounts possible if you have mansion tax, larger mortgage recording tax, flood insurance, or large escrows.
Do I owe New York’s mansion tax in Oyster Bay?
- If your purchase price is $1,000,000 or more, plan for a 1% mansion tax on the buyer side, subject to current law and any applicable supplements.
Who pays the owner’s title insurance policy in New York?
- It varies by local custom and negotiation. In some New York deals the seller pays the owner’s policy, in others the buyer does, so confirm in your contract.
What is the mortgage recording tax and who pays it?
- It is a tax charged when recording a mortgage in many New York counties, including Nassau. It is typically paid by the borrower and disclosed by your lender.
Why are escrows higher in Nassau County?
- Property taxes are comparatively high, so lenders often collect larger initial escrow cushions to cover upcoming tax and insurance payments after closing.
