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What Are Closing Costs?

What Are a Buyers Closing Costs in New Jersey?

You’ve found your dream home in New Jersey, and now it’s time for the closing process. Also known as settlement, closing is when property ownership passes from the seller to you. It involves signing documents and paying fees. Understanding these costs is crucial for a smooth transaction.

Common Closing Costs in New Jersey

  • Appraisal Fee: Covers the property appraisal, often paid during the loan application.
  • Credit Report Fee: Pays for the credit report requested by the lender.
  • Loan Origination Fee: Covers the lender’s loan-processing costs, typically 1% of the mortgage.
  • Loan Discount Points: Optional points you pay to lower your interest rate, each point equals 1% of the loan amount.
  • Title Insurance Fees: Include title search, examination, insurance, and document preparation.
  • PMI Premium: Mortgage insurance for loans with low down payments, protecting lenders against foreclosure.
  • Prepaid Interest Fee: Covers interest from the purchase date to the first mortgage payment.
  • Escrow Accounts: Set up by lenders to cover future property taxes and home insurance.
  • Recording Fees and Transfer Taxes: Charged by New Jersey for recording documents and transferring ownership.

Schedule a Buyer's Consultation

Ready to proceed? Schedule a buyer’s consultation with GT Luxury Group. We’ll guide you through your options, answer your questions, and help you craft a personalized plan to secure your dream home. Contact us today to start your New Jersey home-buying journey with confidence.

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