Buying in Howard Beach and wondering how much cash you will need beyond your down payment? You are not alone. Closing costs can feel confusing, especially if this is your first purchase in Queens. In this guide, you will get a clear, local breakdown of what buyer closing costs include, how they vary for condos, co-ops, and one- to two-family homes, and simple worksheets to help you budget for a Q1 or Q2 closing. Let’s dive in.
What closing costs include
Closing costs are everything you pay to finalize your purchase besides your down payment. They typically fall into five buckets:
- Lender fees: application, processing, origination, appraisal, credit report, and underwriting if you finance the purchase.
- Third-party services: attorney, title search and title insurance (for condos and houses), survey for houses, home inspection, and pest inspection if needed.
- Government items: mortgage recording tax in NYC when you record a mortgage, plus modest deed or mortgage recording fees. Transfer taxes are commonly paid by the seller, but contracts can allocate costs differently.
- Building or community charges: condo or co-op application and move-in fees, and possible co-op board package costs.
- Prepaids and escrows: prorated property taxes, condo common charges or co-op maintenance adjustments, first year of homeowner’s insurance, and lender-required escrow deposits for taxes and insurance.
What changes by property type in Howard Beach
Condos
If you buy a condo, expect an owner’s title insurance policy and a title search. Title premiums in New York follow published rate tables and scale with price. If you take a mortgage, NYC’s mortgage recording tax applies, and you will also pay recording fees for the deed and mortgage. Many condos charge an application fee and a move-in fee. You will settle prorated common charges and property taxes at closing. The seller typically pays New York State and NYC transfer taxes, but your contract controls, so confirm who pays what with your attorney.
Co-ops
Co-ops are share purchases with a proprietary lease, so traditional owner’s title insurance is usually not part of the closing. Some buyers or lenders add limited coverage for specific issues, but many lenders do not require an owner’s policy for co-ops. You will budget for the board process: application fees, background and credit checks, and move-in or move-out fees. Attorney time can be higher due to board package preparation and negotiation. You will also settle prorated maintenance and any assessments. Co-ops often avoid some municipal recording costs since there is no deed transfer, which can lower total closing costs compared with condos. A co-op may have a flip tax at sale, commonly paid by the seller, though that can vary.
One- to two-family homes
For houses, both a title search and owner’s title insurance are standard. A survey is often required by the lender or simply wise to obtain. You will see municipal certificate fees, water and sewer status checks, and any local assessments that must be cleared. Plan for a general inspection and specialty checks where prudent. If you finance, NYC’s mortgage recording tax applies, along with standard recording fees.
NYC and NYS taxes to know (as of December 2025)
- New York State mansion tax: Applies to residential purchases at or above $1,000,000. The commonly cited rate is 1% of the purchase price at that threshold. Check current rules with your attorney or the New York State Department of Taxation and Finance because rates and thresholds can change or include graduated scales.
- NYC Mortgage Recording Tax: Applies in the five boroughs when you record a mortgage. The total tax is a significant percentage of the mortgage amount, not the purchase price. Your lender will calculate the exact figure for your loan.
- NYC Real Property Transfer Tax (RPTT) and NYS Transfer Tax: These taxes apply to transfers within NYC and New York State. In practice, sellers usually pay them, but your contract may allocate these differently, so verify with your attorney.
Typical cost ranges for budgeting
Every transaction is unique, but the following ranges are useful for planning in Howard Beach and greater NYC:
- Overall buyer closing costs: plan for roughly 2% to 5% of the purchase price. Co-op totals can be lower since title insurance and some recording costs do not apply, though co-op fees and reserves can add.
- Attorney fees: about $1,500 to $4,000.
- Lender fees: $500 to $3,000, or sometimes 0.5% to 1% of the loan amount.
- Appraisal: $400 to $1,000.
- Credit report and underwriting: $50 to $200.
- Title search and owner’s title insurance (condos and houses): roughly $1,000 to $6,000+ depending on price and endorsements.
- Recording fees: a few hundred dollars total for deed and mortgage.
- Home inspection: $300 to $800, plus specialty inspections if needed.
- Survey for houses: $300 to $1,200.
- Co-op application fee: $200 to $1,000; move-in fee: $100 to $500; board package help (attorney or accountant): $300 to $1,500.
- Prepaid homeowner’s insurance and escrows: often one year of the premium or lender-required deposits.
- Property tax or building fee prorations: vary based on your closing date.
- NYS mansion tax: 1% of the purchase price for homes at or above $1,000,000 unless your contract says otherwise.
- NYC mortgage recording tax: material percentage of your mortgage amount. Your lender will provide an exact calculation.
Tip: Ask your lender for a Loan Estimate within three business days of applying, and expect a Closing Disclosure at least three business days before closing. These documents make your fees clear so there are no last-minute surprises.
Timeline: when you pay what (Q1–Q2 closings)
- Offer and contract: you will submit an earnest money deposit when your contract is signed. In NYC this is often 1% to 3% and held in attorney escrow.
- Early process: pay building application fees for condos and co-ops, then schedule your appraisal and inspection soon after contract to meet any financing or inspection deadlines.
- Mid-process: your lender issues a loan commitment after underwriting. You and your attorney resolve any open conditions.
- Final week: your lender must send the Closing Disclosure at least three business days before closing. Review every line with your lender and attorney.
- Closing day: bring your remaining down payment, the balance of your closing costs, and any lender-required escrows.
Sample worksheet and three Howard Beach examples
Use this worksheet to gather quotes from your lender and attorney, then plug in building-specific fees.
Your closing cost worksheet
- Purchase price:
- Earnest deposit (credited at closing):
- Down payment (percent × purchase price):
- Lender fees (origination, processing):
- Appraisal:
- Credit report:
- Loan application fee:
- Attorney fee:
- Title search and owner’s title insurance (condo/house only):
- Survey (houses):
- Home inspection:
- Co-op app and move-in fees (co-op only):
- NYC mortgage recording tax (if financing):
- NYS mansion tax (if price ≥ $1,000,000):
- Recording fees (deed and mortgage):
- Prorated property taxes or building fees:
- Prepaid insurance and lender escrows:
- Misc. (HOA or co-op charges, courier, bank wire):
- Estimated total cash due at closing (sum minus earnest deposit):
Example A: Condo at $700,000 (hypothetical)
- Down payment at 20%: $140,000
- Estimated buyer closing costs: 2% to 4% of price, about $14,000 to $28,000
- Typical line items: attorney around $2,000, title search and owner’s policy roughly $2,500 to $4,500, appraisal around $500, inspection about $400, lender fees $1,500 to $3,000, plus NYC mortgage recording tax if you finance and prorated common charges and taxes. No mansion tax at this price.
Example B: Co-op at $500,000 (hypothetical)
- Down payment at 20%: $100,000
- Estimated buyer closing costs: commonly $3,000 to $10,000, often lower than condos because there is typically no owner’s title policy
- Typical line items: co-op application fee $200 to $1,000, board package help $300 to $1,000, attorney $1,500 to $3,000, appraisal $400 to $700 if you finance, inspection $300 to $600. Some co-ops require move-in escrows or small reserves.
Example C: One-family home at $900,000 (hypothetical)
- Down payment at 20%: $180,000
- Estimated buyer closing costs: roughly 2.5% to 5%, about $22,500 to $45,000
- Typical line items: title insurance $3,000 to $6,000+, survey $500 to $1,200, municipal certificates $200 to $500, inspection and specialty checks $500 to $1,500, attorney $2,000 to $4,000, recording fees and NYC mortgage recording tax if you finance. No mansion tax at this price.
These examples are planning tools. Your exact numbers depend on the building, your lender, and your contract. Ask for written, itemized estimates early.
Quick glossary for first-time buyers
- Closing costs: all fees to complete your purchase beyond your down payment.
- Down payment: your cash contribution toward the purchase price.
- Mortgage recording tax: a city or county tax when you record a mortgage. NYC rates differ from other parts of the state.
- Real Property Transfer Tax (RPTT): New York City’s transfer tax on property transactions inside the five boroughs.
- NYS mansion tax: a state tax on residential purchases at or above $1,000,000.
- Title insurance: protects owners or lenders from covered title defects and certain claims.
- Co-op: you buy shares in a corporation and receive a proprietary lease for your unit.
- Condo: you own real property, plus a share of the common elements.
- Board package: your co-op application that includes financials, references, and required documents.
- Escrow deposit: funds a lender holds to pay taxes and insurance on your behalf.
Ways to reduce your closing costs
- Shop your mortgage: compare lender fees and interest rates. Even small differences in origination or points can save real money.
- Ask about credits: many lenders can offer lender credits in exchange for a slightly higher rate. Run the math for your timeline.
- Request seller concessions: you can negotiate credits to offset your closing costs, subject to lender and building rules.
- Confirm what is required: know which fees are mandated versus optional. Your attorney and lender can help you prioritize.
- Review title options: for condos and houses, title premiums follow set rates, but endorsements and some third-party charges vary by provider.
- Time your closing: scheduling near the end of a tax period can change your prorations and how much you prepay into escrows.
Local tips for Howard Beach buyers
- Co-op timelines can extend the process. Build in extra time for board review, interviews, and any move-in scheduling.
- Each building has its own fee schedule. Ask for a list of application charges, move-in fees, and any required deposits before you sign a contract.
- For houses, line up your survey and municipal searches early to avoid delays.
- Always verify who pays transfer taxes in your contract. While sellers typically pay NYC and NYS transfer taxes, contracts can shift those costs.
Buying in Howard Beach should feel exciting, not stressful. If you want a local team to help you plan your budget, coordinate timelines, and navigate building requirements, reach out to The Valvo Team. We will walk you through the numbers, connect you with trusted local pros, and help you move from offer to keys with confidence.
FAQs
Who usually pays transfer taxes in NYC for Howard Beach sales?
- In practice, sellers usually pay New York State and NYC transfer taxes, but contracts can reassign costs. The mansion tax at or above $1,000,000 is typically the buyer’s responsibility unless your contract says otherwise.
How much cash should a first-time buyer in Queens bring to closing?
- Plan for your down payment plus about 2% to 5% of the purchase price for closing costs. Co-op purchases can be lower since some recording costs and owner’s title insurance do not apply.
Are buyer closing costs tax-deductible?
- Some amounts like mortgage interest and property taxes may be deductible, but closing costs are generally not fully deductible. Speak with a tax advisor for guidance on your situation.
How do co-op closing costs differ from condo costs in Howard Beach?
- Co-ops often have lower closing totals because owner’s title insurance and some recording costs are not typical. You will, however, budget for board-related fees, possible reserves, and move-in costs.
What is the NYC mortgage recording tax and when does it apply?
- It is a tax on mortgages recorded in NYC. It is calculated on the mortgage amount, not the purchase price, and is paid when you finance a purchase of a condo or house, or a co-op with a financing structure that requires recording. Your lender will calculate the exact amount.
