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Plan your New Jersey home purchase

What Are Closing Costs?

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Know your closing costs and cash to close

Your down payment is only part of the money needed to buy a home. Closing costs cover loan and settlement services, while cash to close reflects what you still need to bring after deposits, credits and other adjustments. Start with your lender’s Loan Estimate, then compare it with your final Closing Disclosure. A general percentage cannot replace a written estimate for your transaction.

If you are still planning your purchase, our New Jersey buying guide explains the steps from preparation through closing.

What to include in your budget

  • Loan charges: Compare itemized origination, underwriting and processing charges rather than assuming a standard fee. Ask your lender to explain each charge and any lender credits.
  • Discount points: Points are an upfront charge paid in exchange for a lower interest rate. Compare loan options with and without points, considering how long you expect to keep the loan.
  • Appraisal and credit report: These help the lender assess the property and application. Some charges are paid before closing; check that they are not counted twice in your remaining cash requirement.
  • Title and settlement services: Request an itemized quote for title work, lender’s and owner’s title insurance where applicable, attorney services and settlement fees. Ask which services you can shop for and what each policy protects.
  • Prepaid items and escrow: These can include interest from closing through the end of the month, insurance premiums and an initial escrow deposit for future taxes and insurance. They are not all lender service fees.
  • Mortgage insurance: Whether it applies, and whether premiums are upfront or ongoing, depends on your loan program and down payment. Confirm the actual treatment with your lender.
  • Recording, municipal and association charges: Ask your attorney and settlement provider which charges apply, who pays them under your contract and whether any have already been paid.
  • Other purchase expenses: Keep inspections, moving, repairs and a cash reserve in your wider budget, even when they do not appear as closing charges.

Check New Jersey transfer fees separately

Do not assume every state transfer fee belongs in the buyer’s budget. New Jersey generally imposes the Realty Transfer Fee on the seller, and the seller is also legally responsible for the separate Graduated Percent Fee on qualifying transfers above $1 million under the rules effective July 10, 2025. Ask your attorney to confirm applicable fees, exemptions and any contractual allocation. Our seller closing costs guide links to the official New Jersey schedules.

Review the final figures before you close

For most home purchase mortgages, you must receive the Closing Disclosure at least three business days before closing. Compare the loan amount, interest rate, monthly payment, itemized fees and cash to close with your latest Loan Estimate. Ask your lender about differences before signing. Some loan types use different disclosures; cash purchases do not have mortgage loan charges.

Use the CFPB Closing Disclosure explainer to review the figures, and check its disclosure timing guidance and exceptions. Your lender and closing team should confirm your transaction’s final amounts. This is general planning information, not individualized legal, tax or lending advice.

Ask about your buying plan

Tell us where you are looking, your timing and the questions you want to discuss. Send a buying inquiry below to request a response from GT Luxury Group. Submitting the form does not book an appointment or approve a loan. First name, email, your questions, submitter type and permission to handle the inquiry are required. Phone and optional text permissions are not required.

Contact Form 1

Continue planning your purchase

New to the process? Read our first time buyer guide. For terms you encounter in estimates and loan documents, use the financial terms glossary. If you are selling as well, review seller closing costs separately so you do not mix the two budgets.

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