When I sit down with my clients to go over their Millburn-Short Hills NJ home buying budgets, I often have to remind them of New Jersey closing costs, especially if they’re from out of state. There are four major categories of closing costs: legal costs, mortgage costs, inspection costs, and miscellaneous expenses.
Under legal costs, there is the attorney fee, which runs from $1,000 to $1,500; the survey fee, which is $150 to $250 for a condo or $450 to $800 for a single family home; and the title search fee, which ranges from $250 to $500. Title insurance premiums also need to be considered. The fees are variable, so check with your attorney to get New Jersey rates. Mortgage costs include the application fee ($300 to $600) and the appraisal fee ($300 to $600). Check with your lender about other costs, including Points and PMI.
Figure Inspection Costs for Millburn-Short Hills NJ Home Buying
There are several inspection costs included in New Jersey closing costs. The home inspection costs from $400 to $750; a radon inspection costs from $120 to $300; a termite inspection costs from $75 to $150; an oil tank inspection will run from $400 to $500; and a septic tank inspection will go from $750 to $1000. Other inspections, including structural engineer, chimney, or mold, might be necessary.
Finally, remember to budget for homeowners insurance, flood insurance (if necessary), and a reserve of two months of property taxes and homeowners insurance. The realty transfer tax is also imposed on a rising scale based on the selling price of the house. For houses that sell for more than $1 million, there’s also the mansion tax to pay. However, the contract can be written to so that the buyer and the seller share the cost of the taxes.
Be sure to check out the closing cost estimator on my site.
