When it comes to buying a home, budgeting for the closing costs can sometimes prove to be an added challenge. NY1's Jill Urban filed the following report.

So you've found a home, agreed on a price and are all set, right? Well not exactly. You can't forget to factor in those expensive closing costs.

"As I work with sellers and buyers I am always amazed and surprised how they don't consider closing costs," said Chris Moseley of Charles Rutenberg Realty. "Closing costs at the end of the day can add anywhere from four to five percent to the purchase price. And as far as closing costs, New York State is the most expensive state in the country for closing costs."

Basically, closing costs can be broken down into a few categories. First, there are the taxes involved.

"New York State tax will be .4 percent of purchase price. New York City tax will be one percent on the purchase up to $500,000 and then 1.425 percent on the purchase over $500,000, and a lot of people don't recognize that," said Moseley.

Those are the transfer taxes paid by the seller. Some also have to pay a flip tax if it's a co-op.

For buyers, there's the mortgage tax and a title insurance premium if you are buying a condominium or house. There's also a mansion tax of the home you are buying is more than a million dollars.

Then there are the fees.

"You'll have a move in fee, you'll have a move in deposit, you'll likely have application fees for co-op or condo," said Real Estate attorney Lisa Breier Urban. "You will have mortgage fee, you'll have an appraiser fee, you will have to pay interest from the date of closing to the end of the month of closing, you will have to pay your lawyer."

There are also all of the miscellaneous bank fees. Sellers will have to pay the brokers fee which is between four and six percent. Some condos ask buyers to pay a contribution to reserves fee. If buying from a sponsor instead of resale, one can expect additional fees as well.

There are a lot of charges that can pop up. But there are two documents that can give buyers an idea of what to expect. The good faith estimate document and the truth in lending form will break it down and give buyers an estimate so there are no surprises.

Buyers should review these in advance with an attorney or mortgage broker.

In some cases, buyers and sellers can negotiate who pays certain fees. In the current market, experts say many buyers and sellers are paying their own for resale. In cases of new construction, some developers are even picking up part of the cost.