Closing costs are the fees that accompany the purchase or sale of a home. Some fees are strictly the designated responsibility of the buyer or the seller, while the responsibility for other costs may be negotiated among the parties, or divided according to New Jersey custom. A real estate professional like Orly Chen can let you know what to expect, and where you room to negotiate the costing costs.
Buyer Closing Costs
Closing costs for a home typically run two to four percent of the purchase price, with loan fees charged by the lender usually being the costliest fee. The following is a list of costs the homebuyer can typically expect to pay in New Jersey. Some closing costs, like the home inspection, will be paid only once. Other costs, such as insurance premiums, will be paid on a recurring basis. While all these fees are considered “closing” costs, some of the fees, such as the loan application items, will be paid in advance of the actual closing date.
• Down payment
• Loan fees (points, application fee, credit report)
• Prepaid interest
• Home inspection fees
• Appraisal cost
• Mortgage insurance (typically 1 years premium plus an escrow of 2 months)
• Hazard insurance (typically 1 years premium plus an escrow of 2 months)
• Title insurance
• State, county or city transfer taxes
• Attorney fees
• Courier/delivery service
• Notary
Seller Closing Costs
The chief closing concern for sellers is paying off the remaining balance of their loan, if one still exists. This balance must be paid at the closing before the seller can receive any proceeds from the home sale. Other costs the seller may typically encounter include:
• Broker’s commission
• Local property transfer tax; county transfer tax, state transfer tax, state capital gains tax.
• Mortgage release verification
• Courier/delivery service
• Attorney’s fee
• Notary
• Title insurance
• Property taxes (prorated)