New York, Texas and Florida have something in common.  According to Bankrate.com, they are the most expensive states to close on a home.  North Carolina is the least expensive state to close on a home.

The top five most expensive states are:

1. New York:  $4,016
2. Texas:   $3,975
3. Florida:   $3,683
4. Oklahoma:   $3,558
5. New Mexico:   $3,465

The least expensive state, North Carolina, averages $2,650 in closing costs.  The full article gives this basis for the higher costs in New York.  Most closings in New York are prepared and handled by attorneys.  Their fees are higher than closing agents which are commonly used in other states. 

The reason Texas and Florida are number two and three on the list is both states title insurance rates are promulgated by the insurance department.  In simple terms, the state government sets the fees.  Its illegal for title companies to charge rates other than those set by the state insurance departments. 

The typical closing costs in the ranking above were based on a $200,000 purchase price.  Its important to know your closing costs will vary from lender to lender.  You will want to have a Good Faith Estimate prepared by any lender you work with.  The title fees will be the same but what the lenders charge can vary by a few hundred dollars. 

Its a fact of home ownership.  You can’t avoid closing costs.  At least in Southeast Texas property values have gone up enough each year that your closing costs turn into home equity usually in less than one year.    And, that’s one more good thing about buying a home in Southeast Texas.