Buyer Closing Costs in New Jersey: What to Expect

Your two most important documents

If you use a mortgage, your lender gives you a Loan Estimate after you apply. It lists your expected interest rate, monthly payment and closing costs. Compare Loan Estimates from more than one lender.

Before closing, your lender gives you a Closing Disclosure. Federal rules require lenders to provide it three business days before your scheduled closing. Compare it line by line with your Loan Estimate and ask about anything that changed.

Loan related costs

• Lender fees, such as origination or underwriting fees.
• Discount points, if you choose to pay them to lower your rate.
• Appraisal fee.
• Credit report and flood certification fees.

Title, attorney and government costs

• Your attorney's fee. Most New Jersey buyers in the northern part of the state use an attorney.
• Title search and title insurance, including the lender's policy and usually an owner's policy.
• Settlement or closing fees charged by the title company.
• Recording fees for the deed and mortgage.
• Survey, if required by the title company or lender.

Prepaid items and escrow deposits

• Homeowners insurance, usually the first year paid in advance.
• Property tax adjustments with the seller for the part of the period already paid.
• Initial deposits into your escrow account for future taxes and insurance.
• Prepaid interest from the closing date to the end of the month.

What the seller usually pays

New Jersey charges a realty transfer fee when the deed is recorded, and the Division of Taxation describes it as a fee on the seller. A separate fee applies to sales over $1 million. It was once paid by buyers and called the mansion tax, and it was changed in 2025. Ask your attorney who pays which fee on your purchase.

Ways to lower what you bring to closing

• Shop at least two or three lenders and compare Loan Estimates.
• Ask your attorney to compare title quotes.
• Negotiate a seller credit, especially after the inspection.
• Ask your lender and agent about first-time buyer programs, such as those offered through NJHMFA.
• Pick a closing date that keeps prepaid interest low.

Cash to close is more than closing costs

Your cash to close is the total you bring to the closing table. It includes your down payment and closing costs, minus your earnest money deposit and any credits from the seller or lender. Your Closing Disclosure shows this number on its first page.

Most closings ask for a wire transfer or certified funds. Wire fraud is a real risk in real estate. Call your attorney or title company at a number you already know before you send money, and never follow wiring instructions that arrive in a surprise email.

Who to ask about each cost

• Your lender: loan fees, points, appraisal and escrow deposits.
• Your attorney or title company: title insurance, settlement and recording costs.
• Your insurance agent: the homeowners insurance premium.
• Your agent: typical seller credits and how to ask for them in your market.