Closing Costs and Reserves are little understood, but are quite simple, in a way - they charge you for everything and that's normal.
Closing Costs generally include the lender's (the "bank's") attorney, the appraisal, your lawyer, document delivery, proofing, title costs, deed processing, any sales commission(s) per your prior agreement(s), mortgage tax (buyers) an transfer taxes (sellers). Most of your closing cost is pre-paid taxes as required by your new town/village/school system. None of it matters other than making sure you're not getting gauged by some strange fee added that could be pure profit for the lender. We catch those.
Reserves - While they don't say it, your lender wants 6-12 months of payment money left in your account as payment reserves in case heaven-forbid you lose your job or whatever life comes which requires time to fix. If you can't show you've reserves, you could be rejected (technically, depending on the lender).
*Important qualifications regarding all information on this site: All numbers represent the experience of our agents and may not accurately reflect national averages or others' numbers. All examples are anecdotal, and should not be regarded as relevant to your own circumstances. Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, real estate advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, finance, realtor estate r other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. All information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose. To review your situation, reach us at 914-413-3689.