New York’s closing costs continue to be the highest in the nation, creating higher hurdles for prospective homebuyers who are also facing higher downpayments.

For the fourth consecutive year, New York topped Bankrate.com’s annual closing cost survey, which the North Palm Beach, Fla., financial research and analysis firm released today. The average closing cost for a $200,000 home earlier this summer was $4,016 in New York City and $3,975 in Buffalo.

The state’s closing costs were weighed down by state taxes levied on lenders and lawyer-intensive closing procedures, which often include three legal representatives whereas western states leave that those tasks to less expensive title agents and escrow officers. In last year’s survey, which listed a statewide average instead of ones for upstate and downstate, New York’s average closing cost was $3,830.

“I’m not surprised by New York state’s high ranking. … It’s simply a reflection of doing business in New York,” said Robert Hayes, senior vice president of Wilber National Bank and president of the Mortgage Bankers Association of Northeastern New York.

Hayes said higher closing costs do not appear to be deterring prospective homebuyers, though those expenses will likely rise further. With counties struggling to fill budget gaps caused by the state’s economic downturn, Gov. David Paterson signed into law legislation that allows county officials to raise mortgage recording fees.

The new law could push some county clerk mortgage recording costs to $35 to $75 for a 10-page document. Officials in Albany, Saratoga and Fulton counties have eyed recording fee hikes.

“This is a problem in New York, and it creates barriers to homeownership for some New Yorkers,” said Salvatore Prividera, a spokesman for the New York State Association of Realtors, an Albany trade organization.

With an average closing cost of $2,692, North Carolina had the nation’s lowest closing costs, replacing Indiana at the bottom. New York City topped Bankrate.com’s list, followed by Texas, Buffalo, Miami and Oklahoma.