Closing Costs Explained
What Are Closing Costs?
You've found your dream home, the seller has accepted your offer, your loan has been approved, and you're eager to move into your new home. But before you get the key, there's one more step...the closing.
Also called the settlement, the closing is the process of passing ownership of property from seller to buyer, and it can be a daunting process. As a buyer, you will sign what seems like endless piles of documents and will have to present a sizeable check for the down payment and various closing costs. It's the fees associated with the closing that at times remain a mystery for buyers who may simply hand over thousands of dollars without really knowing what they are paying for.
As a responsible buyer, you should be familiar with these costs that are both mortgage-related and government-imposed. Although many of the fees may vary by locality, below are some common fees explained.
What Are The Types Of Property Closing Costs In New Jersey?
Real estate agent commissions. About 5%-6%, and split between the listing agent and the buyer’s agent. (paid by seller)
|These are just average estimates and are by no means written in stone as actual costs. We suggest you call a few of these vendors to verify for yourself what some of these typical costs are. If you would like any referrals we are happy to recommend whatever you need. In our experience, we have been fortunate enough to have worked with many great vendors that our clients rave about. We base all of our referrals on client feedback as we know your opinion, as well as your satisfaction, are ultimately what matters most.
There are certain additional costs and variants depending on your specific case that you should consult with our office on. Some of these are:
|Please note that the values shown here are only estimated amounts for purposes of general information regarding the topic of who pays closing costs in NJ. Do not hesitate to contact us for more information.
|EXAMPLE APPROXIMATE LOAN COST EXAMPLE FROM A GOOD LENDER
The information provided regarding the Approximate Cost of Closing Fees, Approximate Total Funds needed, and other details are something you should get right away from your mortgage lender. Setting expectations on what your real payment is going to be could go a long way in deciding how much house you can or want to pay for.
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