What Are Closing Costs in New Jersey? Here’s What Every Buyer (and Seller) Needs to Know
You’ve saved for a down payment. You’ve found the perfect home. But are you ready for the real cost of closing in New Jersey?
After guiding countless buyers and sellers across Hudson, Bergen, and Essex counties, I’ve noticed one thing that consistently catches people off guard: closing costs.
They’re the “oh no” moment for many buyers, especially first-timers, who were laser-focused on saving up for a down payment and didn’t realize that buying or selling a home comes with additional fees that can add up quickly.
Let’s break it down in a way that’s easy to understand, so you can plan with confidence, and without surprises.
What Are Closing Costs?
Think of them like the extra fees tacked onto your concert ticket at checkout. The ticket says $100, but by the time you’re done paying all the handling and service fees, it’s $130. Closing costs are the “fees and expenses” that go beyond your down payment to officially transfer ownership of the home.
These costs typically range from 2% to 4% of the purchase price—so for a $500,000 home, you’re likely looking at $10,000–$20,000 on top of your down payment.
Common Closing Costs in New Jersey
Here’s a look at what’s included:
Attorney Fees
New Jersey is an attorney state, meaning a lawyer is essential to review contracts and protect your best interests. Expect to pay $1,200 to $2,500.
Title Insurance
This protects you from any legal claims against the home’s ownership. The title company does a deep background check and offers an insurance policy in case anything slips through. Costs typically range from $2,000 to $4,000+ depending on the property and provider.
Mortgage-Related Fees
These include:
Appraisal: $500–$700
Loan Origination Fee: Typically 0.5–1% of your loan amount
Credit Report, Flood Certification, Misc. Lender Fees: Vary
County Recording Fees
Small, but necessary. Usually around $300–$500.
Homeowner’s Insurance
A requirement to close. Budget $1,500+, depending on the property and coverage.
Home Inspection
This is your peace of mind. Base inspections typically run $500–$700, but additional services (like oil tank scans, septic or well inspections, mold testing, etc.) can drive that up significantly.
Prepaid Taxes & Escrow
Your lender will require an upfront payment for property taxes and escrow. Expect to set aside $2,000–$4,000+, depending on the area and your closing date.
How to Reduce Closing Costs
Shop around: Ask for quotes on attorneys, title companies, and inspectors.
Compare lenders: Fees can vary dramatically.
Ask about credits: Some lenders offer lender credits or can roll fees into your mortgage (though this may increase your interest rate).
Negotiate concessions: In some markets, you may be able to negotiate seller contributions toward your closing costs.
So, What’s the Bottom Line?
Buying a home in New Jersey isn’t just about affording the down payment. It’s about understanding the full scope of the costs so you can prepare strategically, not reactively.
And that’s where I come in.
Whether you're a first-time buyer, an upgrading homeowner, or simply trying to wrap your head around it all, I'm here to walk you through it. From day one, I bring clarity, transparency, and strategy to every step of the transaction.
Thinking of buying or selling in Hudson, Bergen, or Essex County?
Let’s connect and walk through what your numbers might actually look like. No pressure, just clarity.
