Closing Cost Expectations for New Jersey Buyers

WHAT CAN A BUYER EXPECT FOR CLOSING COST?

Congratulations!  You have found the home of your dreams and your offer was accepted!  In all the excitement and with so many details to attend to, you may want to take a step back and ask “What comes next?”

Avoid sticker shock at the closing table by preparing yourself for the costs that are part of the real estate purchase beyond the actual price you’ve agreed to pay for the house itself, which can include all or some of these:

1. LENDER FEES –
   1. Origination or Application fee
   2. Credit Report
   3. Commitment fee
   4. Broker Fee
   5. Underwriting
   6. Document Preparation
   7. Processing
   8. Tax Service
   9. Appraisal
   10. Flood Cert
   11. Postage or Courier fees
   12. Escrow for prepaid items
   13. PMI (Personal Mortgage Insurance)
   14. Pre-paid interest on loan
   15. Home Owners Insurance premiums
2. PRO-RATED ADJUSTMENTS – (if applicable)
   1. Annual property taxes
   2. Fuel adjustment
   3. Water/Sewer adjustment
   4. Home Owners Association
3. OTHER COSTS – (as applicable)
   1. Closing Attorney
   2. Title Search
   3. Title Insurance
   4. Recording fee
   5. Home Inspection
   6. Other inspections (Electrical, Chimney, Sewer)
   7. Property Survey
   8. Home Warranty

All of these items may vary depending on many factors involved in your real estate transaction.

Lender requirements may include a certain level of home insurance be purchased to protect the lenders investment, but your personal circumstances may fare better in the long run with a greater degree of insurance.

Although some closing costs may be unavoidable, your local marketing specialist can assist you in determining what is recommended for inspections and any other costs for you to budget for, with the goal of a smooth process from start to closing!