Closing Costs In NJ: A Paramus Homebuyer Guide

Surprised by how quickly closing costs add up when you buy in Paramus? You are not alone. Between lender fees, title charges, taxes, and prepaid items, the final number can feel unclear until late in the process. This guide breaks down what you will likely pay in New Jersey, what sellers typically cover, and a simple way to estimate your cash to close with Paramus‑focused examples. Let’s dive in.

Closing costs in New Jersey

Closing costs are the one‑time expenses to finalize your purchase. In New Jersey, your costs include lender and title fees, attorney services, recording charges, required inspections, and prepaids like insurance and taxes. Exact amounts vary by price, loan type, property type, and negotiated credits, so treat early estimates as a range until you receive formal disclosures.

Who pays what in NJ

• Buyer typically pays: lender fees and appraisal, credit and verification charges, lender’s title policy, attorney, recording fees, home inspections, survey if required, prepaid interest, homeowners insurance, and initial tax and insurance escrows.
• Seller typically pays: real estate commissions, the New Jersey Realty Transfer Fee, seller’s attorney, and any agreed credits or repairs. Owner’s title policy can be paid by either party, based on negotiation.
• Negotiable items: seller concessions toward buyer costs, owner’s title policy, and certain association or transfer fees. Local customs exist, but your contract controls who pays what.

Buyer costs in Paramus

Here are the most common buyer line items and typical ranges you can expect in Paramus:

• Lender fees and origination: often 0.5% to 1.5% of the loan amount, plus application or processing fees that often total $300 to $1,000.
• Discount points: optional, usually 0 to 2% of the loan amount to buy down your rate.
• Appraisal: typically $450 to $900, higher for larger or complex homes.
• Credit report, flood cert, tax service: smaller flat fees that add up to tens or low hundreds.
• Title insurance, lender’s policy: usually required when you finance. The cost is based on price and insurer schedules. Owner’s policy is common in NJ and is negotiable.
• Attorney fees: New Jersey closings commonly involve attorneys for both sides. Buyer attorney fees often range from about $800 to $2,000 or more, depending on complexity.
• Recording and clerk fees: Bergen County charges flat fees to record your deed and mortgage. Expect a few hundred dollars total, but amounts vary by document.
• Home inspections: general inspection plus any specialty inspections like radon, termite, or septic usually total $300 to $1,000 or more.
• Survey: sometimes required or recommended, typically $300 to $900.
• HOA or condo charges: transfer fees, application fees, estoppel certificates, or a capital contribution if applicable.

For financed buyers, total buyer closing costs, excluding your down payment, commonly fall around 2% to 5% of the purchase price in New Jersey.

Prepaids and escrow basics

• Homeowners insurance: lenders often require you to prepay the first year or a portion at closing.
• Property tax escrows: lenders usually collect 2 to 6 months of taxes upfront to seed your escrow account. New Jersey property taxes are among the highest nationally, so the escrow amount can be meaningful.
• Tax proration: in Paramus you will pay your prorated share for the part of the tax year you own the home. The exact number depends on the closing date and local billing cycles.
• Prepaid interest: you will pay interest from the day you close through the end of that month.

Seller costs that impact buyers

Even if you are buying, it helps to understand what the seller pays because these costs influence negotiation and credits:

• New Jersey Realty Transfer Fee: a state fee that is generally paid by the seller and calculated on a graduated schedule based on the sale price. Certain exemptions exist and require documentation.
• Real estate commissions: often the largest seller cost, commonly around 5% to 6% of the sale price in many markets, split between listing and buyer agents. Rates and splits are negotiable.
• Attorney fees, lien payoffs, and prorations: sellers also handle their attorney, pay off any mortgage or liens, and settle prorated taxes and HOA dues.

If the market allows, you can negotiate seller credits to offset part of your costs. Your agent and lender will confirm any program caps on concessions for your loan type.

Estimate your cash to close

Use this simple formula to build a realistic budget before you make offers:

• Cash to Close = Down Payment + Buyer Closing Costs + Prepaids and Initial Escrows − Earnest Money Already Paid − Seller or Lender Credits

Definitions to keep you on track:

• Buyer closing costs: lender fees, title fees, attorney, recording, inspections, appraisal, and survey.
• Prepaids and escrows: insurance, initial tax and insurance reserves, and prepaid interest.
• Credits: earnest money deposit, any negotiated seller concessions, and any lender credits for a chosen rate.

Paramus examples

These quick scenarios are for planning only. Get a Loan Estimate and title quote for exact numbers.

• Scenario A, Condo at $350,000: 5% down is $17,500; closing costs at 2.5% are $8,750; prepaids are $2,000; earnest money is $5,000. Estimated cash to close is $23,250.
• Scenario B, Single‑family at $650,000: 10% down is $65,000; closing costs at 3% are $19,500; prepaids are $4,500; earnest money is $10,000. Estimated cash to close is $79,000.
• Scenario C, Higher‑end single‑family at $1,200,000: 20% down is $240,000; closing costs at 2.5% are $30,000; prepaids are $8,000; earnest money is $20,000. Estimated cash to close is $258,000.

Costs by property or loan

Condos and townhomes

• Expect association transfer or application fees, an estoppel certificate fee, and possibly a capital contribution to the HOA. These can range from several hundred to a few thousand dollars.
• Some lenders require added condo documentation, which can affect timing and availability.

New construction

• Builders may charge administrative or upgrade fees. Some offer incentives like closing cost credits or rate buydowns.
• Municipal certificate and inspection steps may differ. Confirm builder and municipal requirements early.

FHA, VA, and cash

• FHA: you will pay upfront and monthly mortgage insurance premiums. Appraisal requirements can influence repairs and negotiations.
• VA: there is a VA funding fee unless you qualify for an exemption. Certain fees are limited for VA buyers, and sellers can pay some costs within program rules.
• Cash: no lender fees and no lender’s title policy, but you may still purchase an owner’s title policy, and you will pay title, attorney, and recording charges.

Reduce or manage your costs

• Shop two or three lenders. Compare APR and total costs, not just the rate or payment.
• Consider lender credits. A slightly higher rate can reduce upfront fees. Run the math for your expected time in the home.
• Negotiate seller concessions. In some market conditions, sellers may contribute toward closing costs or pay for the owner’s title policy.
• Ask for itemized quotes. Request detailed title, attorney, and association fee breakdowns and check for duplicates.
• Explore assistance programs. First‑time buyer programs may offer down payment or closing cost help through state or county channels.

Get accurate numbers early

• Request a Loan Estimate from your lender within three business days of application. This gives you an itemized projection of costs.
• Ask your attorney or title company for a preliminary title quote and a recording fee estimate for Bergen County.
• If you are buying a condo, request the association’s fee schedule and any transfer or capital contribution requirements upfront.
• Ask for property tax pro‑rations based on your closing date so your escrow and prepaid taxes are not a surprise.

Buying in Paramus should feel confident and clear. With a solid estimate, a good team, and room in your budget for prepaids and reserves, you can move from accepted offer to keys in hand without stress. If you want a local plan tailored to your price point and property type, connect with the team at Links NJ for a straightforward, Bergen County‑focused buying strategy.

FAQs

Who pays the New Jersey Realty Transfer Fee?

• The seller generally pays the state Realty Transfer Fee in New Jersey, calculated on a graduated schedule based on sale price, with specific exemptions available by rule.

How much do Paramus buyer closing costs usually total?

• For financed buyers, closing costs excluding the down payment commonly run about 2% to 5% of the purchase price, plus prepaids and escrows for taxes and insurance.

When will I know my exact cash to close?

• Your Closing Disclosure, delivered at least three business days before closing, provides the final figure. Earlier, your Loan Estimate gives a detailed projection.

Do I need an attorney to buy in New Jersey?

• While not legally required statewide, New Jersey closings commonly include attorneys for both sides and many lenders require attorney involvement for mortgage closings.

How do property taxes affect closing costs in Paramus?

• You will prepay a portion of taxes into escrow and settle prorations based on your closing date. Because New Jersey taxes are high, these prepaids can be a significant part of cash to close.