Anyone who's bought a home knows that the closing costs can sometimes catch you by surprise. In this Money Matters report, NY1’s Paul Messina shows us a way to help you prepare and avoid the shock.

When you buy a new home, and sometimes when you re-finance, there are closing costs associated with the transaction. And while most consumers spend time getting their down payment together, it's those closing costs that need some attention too.

“They don't know what to expect, and sometimes the surprises can be in the tens of thousands of dollars, which is very disheartening for someone,” says Bill Baron, President of TitleVest Agency.

Closing costs are confusing to most people because there are a number of different components that go into calculating them.

“There's the title insurance premiums, there's the transfer taxes, yhere's mortgage taxes, there's recording fees, and there's various other discretionary fees,” says Baron.

And even within transfer taxes alone, there are several to be aware of.

“There's New York State transfer tax. In New York City there's the addition of New York City transfer tax,” says Baron. “If the purchase price is over $1 million then there's a mansion tax. If it's in Suffolk County, in certain regions, then there's Peconic Bay transfer tax.”

Got that? Well, if you're still not ready to figure out your own closing costs, that's OK. TitleVest is providing a Closing Cost Calculator on it's website www.titlevest.com.

All you need to know for a purchase transaction is the purchase price, the mortgage amount, and the county the property is in.

“With that information comes an itemized breakdown of all of the closing costs, and it's not an estimate - it really is the actual costs,” says Baron. “It's something that we will stand behind, we as a company.”

Although your lender may give you a good-faith estimate of the closing costs, it's not always accurate. If they underestimate, you may not have enough to pay. If they overestimate, you may think you don't have enough.

“The other reason that an overestimate could be bad is that the consumer, in going to the closing, might not be prepared to look at the closing costs with a critical eye,” says Baron.

Like making sure you've been given any discounted rates you're entitled to.

So the element of surprise need not sneak up on you, if you're prepared. For more information about TitleVest, and for their Closing Cost Calculator, visit www.titlevest.com.

- Paul Messina