Closing Costs
When purchasing a home, you should plan to spend more than the actual purchase price of the home. The additional expenses you will incur are typically referred to as “Closing Costs”. These expenses are typically paid at closing, but some expenses may be rolled into the mortgage you are obtaining.
The list below is a framework for the type and approximate amount of expense you should plan for. Please remember to consult your real estate attorney and mortgage lender to ensure the accuracy and completeness of these expenses.
| Expense Category | Approximate Cost |
| Legal Fees | $800 - $1,300 |
| Home Inspection (including radon, pest, and structure) |
$450 - $700 |
| Septic Inspection (if necessary) |
$300 - $700 |
| Title Search | $100 - $200 |
| Title Insurance | 0.35% - 0.55% of purchase price |
| Survey | $650 - $1,000 |
| Recording of Deed | $100 |
| Recording of Mortgage | $200 |
| Oil Adjustment (if necessary) |
Adjustment for oil left in the tank |
| Property / Sewer Tax Adjustment | Adjustment for property or sewer taxes prepaid by seller |
| New Jersey Real Estate Transfer Tax | 1% of the total purchase price for homes selling for $1,000,000 or more (Buyer does not pay any Transfer Tax for homes selling below $1,000,000 |
| Mortgage Application | $200 - $400 |
| Mortgage Appraisal | $300 - $450 |
| Private Mortgage Insurance (PMI) | Applies if down payment is less than 20% (ask lender for details) |
| Property Tax Escrow (paid to Lender) | 3 – 6 months of real estate taxes (amount to be defined by Lender) |
| Per diem Mortgage Interest Adjustment | Represents interest from the day of closing to the end of the month |
