Closing Costs

Closing costs are the many fees associated with finalizing a real estate transaction. These can be quite surprising, especially for a first-time buyer or seller, and it's a good idea to review them so you can plan your finances. If you have any questions about the closing costs of a planned home purchase, please don't hesitate to give us a call. We would be happy to help you with all your home buying and selling needs.

For more information, please check out our original blog post at https://tonewjersey.com/.

Average Closing Costs in New Jersey

If you plan to buy a home in New Jersey, the typical closing cost of a property is about 3% of the total value of the house. These can vary depending on several factors, but the 3% amount is a good benchmark you can use when reviewing a deal. 

Closing Cost Breakdown

• Inspections Costs and Mortgage Fees
• Title Expenses/Legal Fees
• Pre-paid Expenses

For a detailed explanation of these closing costs, please check out our original blog post at https://tonewjersey.com/.

Top Tips to Reduce Closing Costs

1. Contact Multiple Lenders

Get in touch with various lending companies in your area to get a good grasp on what deals are available for you. You'll tend to get a better deal if you let them know that you're considering multiple offers. After a few consultations, you should get a general idea on which is the best offer you can get for yourself.

2. Request a GFE Form

A Good Faith Estimate (GFE) Form is a detailed breakdown of the various fees associated with your transaction with a lender. You should read up on the multiple charges they include to identify which of these you can negotiate and possibly remove from your bill. If you have a trustworthy realtor on your side, he can help walk you through the various options involved in working with a lending company.

3. Ask Lender for a Detailed Breakdown

Once you have your GFE form, spend some time talking with your lender and having them explain the charges to you. Good companies tend to be willing to walk you through the various costs and not be in a hurry to rush you to make a deal. Once you're happy with the agreement and are ready to make a decision, don't hesitate to do so.

For more information, please check out our original blog post at https://tonewjersey.com/.