Here in New York City as a general rule of thumb the closing costs for the buyer are about 5% of the mortgage amount on the average but can be a) lower if the buyer is supremely qualified or b) higher due to extenuating circumstances such as non-conventional/traditional funding (if you have only self employed and/or non verifiable income for example).
Some closing costs are based on a percentage of the actual mortgage amount and other are flat fees. As an example, some of the closing costs you incur as a buyer would be a) mortgage tax (1.8%), b) appraisal ($450.00 on a one family house), c) bank attorney fee ($750.00), etc., etc.
Also, if you go less than 20% down and take an FHA mortgage you would have to pay upfront PMI (talk to your mortgage banker about this) which would be 2.25% of the loan amount. You may also have to pay points to buy down the mortgage rate. If you purchase a new construction, it is customary that the buyer also pay the seller's transfer taxes (up to 1.825%) and some other incidentals. Also, if you spend over $1,000,000 on your home purchase you would have to pay a mansion tax of 1% of the purchase price.
If I can be of further assistance please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Cellular: (917) 805-0783
If you are buying resale you dont pay transfer tax and the bigest part of the closing cost will be mortgage recording tax.
Talk to your attorney and mortgage broker .