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Buyer's Approximate Closing Costs


Click on the linked terms to see the definitions below
Legal and Title Costs
1. Attorney Fee
$ 750
to
$ 1,100
2. Survey (condo $150 to $250)
$ 450
to
$ 800
3. Recording Fees with Mortgage and Deed
$ 200
to
$ 300
4. Title Searches/title Policy Endorsements
$ 250
to
$500
5. Title Insurance Premium
Mortgage Costs
6. Application Fee
$ 300
to
$ 650
7. Appraisal
$ 300
to
$ 500
8. Miscellaneous Mortgage Costs
$ 100
to
$ 600
9. Private Mortgage Insurance (PMI)
Often required if mortgage is more than 80% of purchase price
10.

Points
Fee paid to lender to "buy-down" interest rate on mortgate
One point equals 1% of the mortgage
(1 point on a $100,000 mortgage equals $1,000)

Inspection Costs
to
11. Home Inspection
$ 300
to
$ 650
Radon Inspection
$ 60
to
$ 300
Wood Destroying Insect Inspection/Certification
$ 60
$ 150
Septic Inspection (if applicable)
$ 450
$ 750
Oil Tank Inspection (if applicable)
$ 395
to
$ 500
Other Inspections
$____
to
$____
Other Costs
12. Homeowner's Insurance
$ 400
to
$ 900
13. Flood Insurance (if applicable)
$ 750
to
$ 2,000
14. Prepaid Tax Adjustment
$____
to
$____
15. Mansion Tax on Residential Properties

*These figures are general guidelines to aid buyers in calculating their closing costs. The figures are based on estimates of New Jersey and New York fees and are subject to errors and omissions and change without prior notice. 1/2006

TERMS

For the Buyer

INSPECTIONS
Physical inspections for the home, including radon
and termite inspections, should range from $500 to
$600. Additional costs are associated with inspections for septic systems and oil tanks.

TITLE SEARCH AND TITLE INSURANCE
Charges are mandated by the State of New Jersey. The purchase price is applied to a formula utilized by the title company. Depending upon back title availability, the formula utilized is either at a re-issue rate or original rate. Certain endorsements and title requirements required by the lender may increase the premium. Examples of past purchases are as follows:

Home Price Premium Cost
$350,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000		 $1,525.00
$2,125.00
$2,812.50
$3,500.00
$4,187.50
$4,875.00

FILING FEES
Approximate fees for deed and mortgage $500.00

EXPRESS PACKAGES
Approximate price per package $25.00

POSTAGE, TELEPHONE CHARGES,
FAXES, PHOTOCOPIES, WIRES $75.00

MANSION TAX
On all purchases with a sales price of $1,000,000 or more, the Buyer is required to pay a fee of 1% of the total purchase price to the State of New Jersey.

SURVEY (Without stakes) $600.00-$700.00

HOMEOWNER'S INSURANCE
Premium for one year must be paid prior to closing. Proof of payment and that insurance is in force must be given to attorney prior to closing.

REAL ESTATE TAXES
Taxes are apportioned to the day of the closing. (Credit or debit to Buyer at closing depending on status of taxes paid by Seller.)

MORTGAGE FEES and ESCROWS
a. Points - One percent (1%) of the mortgage amount per point.
b. Application Fee - $200.00 to $500.00
c. Interest due on the loan from the closing date until the end of the current month. (In most cases, the first mortgage payment is due on the first day of the second month after closing. Each mortgage payment pays the interest on the mortgage for the prior month.)
d. Real Estate Tax Escrow - 1 to 4 months on average, and/or 1 quarter at closing.
e. Homeowner’s Insurance Escrow - 2 months on average, if required.
f. Bank Attorney Review Fee - $200 to $250 on average.
g. Appraisals, credit reports, tax service fee, etc. - $200.00 to $300.00 on average.
h. Private Mortgage Insurance (PMI) - Most lenders require PMI if you borrow more than 80% of the purchase price. The amount paid will depend upon the mortgage amount and the purchase price. Many banks require the premium for one year of PMI paid in advance plus a two month escrow at closing.

FUNDS DUE AT CLOSING MUST BE IN THE FORM OF A BANK CHECK, CERTIFIED CHECK OR CASHIER'S CHECK
Checks are deposited into your attorney’s trust account together with any mortgage proceeds; all costs and fees are distributed therefrom at closing.

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*The sums quoted herein are estimates only and are subject to change.

Terms authored by
Landel, Bernstein & Kalosieh, LLP
801 Franklin Ave.
Franklin Lakes, NJ 07417
phone (201) 891-6955
fax (201) 891-7420