Don’t be surprised when it comes to the real estate closing costs. What most people either underestimate or don’t think of is the closing costs.
What are Real Estate Closing Costs
When purchasing a home, most everyone knows they will need a down payment along with the mortgage, except the fortunate few who will pay cash for their new home. However, either way you’ll incur closing costs. Closing costs are the charges incurred when buying real estate.
Here’s an idea of what the closing costs will be in New Jersey.
As a rule, most purchases will have closing costs between 2% and 7% of the purchase price. A wide range, right?
Cash purchases will have lower closing costs. But when purchasing with cash there will still be costs for:
Title Insurance and Title Company Fees
Flood Insurance – if this applies
Well and / or septic system inspections – if needed
also – many homeowners associations charge for the transfer of ownership. Check with your Realtor for the amount, if any.
If you’ll be taking a mortgage there will be additional costs incurred.
Mortgage Origination Fees
Pre-Paid Interest (the interest due between the date of closing and the date the first payment is due)
Property Tax Payments into Escrow
Prepaid Homeowners Association dues – if applicable
Private Mortgage Insurance premiums – if applicable
There will be additional smaller costs. We recommend that you speak with your attorney and your mortgage representative early and often. It’s not fun find out you have additional unexpected expenses right before the closing.
When it’s time to either buy or sell, call us. Call Bunny and Art Reiman – The Active Adult Community Specialists
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