Kienlen Lattmann Sotheby's International Realty home
Agent Photo
Anthony Danza
Kienlen Lattmann Sotheby's International Realty

Closing Costs for Buyers

When purchasing a home, you should plan to spend more than the actual purchase price of the home. The additional expenses you will incur are typically referred to as “Closing Costs”. These expenses are typically paid at closing, but some expenses may be rolled into the mortgage you are obtaining.

The list below is a framework for the type and approximate amount of expense you should plan for. Please remember to consult your real estate attorney and mortgage lender to ensure the accuracy and completeness of these expenses.

Expense Category
Approximate Cost
Legal Fees
$1,800 - $3,500
Home Inspection (including radon, pest, and structure)
$500 - $1,500
Septic Inspection (if necessary)
$500 - $1500
Tank Sweep
$300 - $500
Title Search
$300 - $800
Title Insurance
0.35% - 0.55% of purchase price
Recording of Deed
Recording of Mortgage
$300 - $400
Oil Adjustment (if necessary)
Adjustment for oil left in the tank
Property / Sewer Tax Adjustment
Adjustment for property or sewer taxes prepaid by seller
New Jersey Real Estate Transfer Tax
1% of the total purchase price for homes selling for $1,000,000 or more (Buyer does not pay any Transfer Tax for homes selling below $1,000,000
Mortgage Application
$300 - $700
Mortgage Appraisal
$300 - $700
Private Mortgage Insurance (PMI)
Applies if down payment is less than 20% (ask lender for details)
Property Tax Escrow (paid to Lender)
3 – 6 months of real estate taxes (amount to be defined by Lender)
Per diem Mortgage Interest Adjustment
Represents interest from the day of closing to the end of the month