Leave a Message

By providing Fiona Bradshaw your contact information, you acknowledge and agree to our Privacy Policy and consent to receiving marketing communications, including through automated calls, texts, and emails, some of which may use artificial or prerecorded voices. This consent isn’t necessary for purchasing any products or services and you may opt out at any time. To opt out from texts, you can reply, ‘stop’ at any time. To opt out from emails, you can click on the unsubscribe link in the emails. Message and data rates may apply.

Thank you for your message. I will be in touch with you shortly.

Closing Costs

What Are Closing Costs and How Much Will I Pay?

Below you will find helpful information regarding the seller’s closing costs and the buyer’s closing costs.

What are SELLER’S CLOSING COSTS:

Common closing costs for sellers include:

Agent commission: Usually 3–6% of the home's sale price, but can vary

Mortgage payoff: The balance on your mortgage at the time of sale

Title insurance: Protects the buyer from any title issues that arose before the sale

Prorated property taxes: Any unpaid real estate taxes for the year of sale are credited to the buyer at closing

Seller concessions: Sellers may offer to pay for repairs or a portion of the buyer's closing costs

Local taxes and municipal fees: The seller is usually responsible for these

Lender fees: Such as origination and appraisal fees

Escrow fees: A fee associated with closing

Recording fees: A fee associated with closing

Attorney fees: If you hire legal representation

You can use the proceeds from the sale of your home to pay off your mortgage, but you might need to make up any difference if interest has accrued.

What are BUYER’S CLOSING COSTS:

Closing costs are fees paid in connection with the refinance or transfer of ownership in real property. They are paid on the settlement date. Closing costs can be a big surprise for some first-time homebuyers, so be sure to plan ahead and make sure you have enough cash on hand to cover this amount. These fees will always vary. What you pay for one refinance or property transfer will not be the same as another. This is due to the different parties involved, different types and locations of property, the financial capacity of a buyer and many more factors. In general, closing costs average about 2-6 percent of the home’s purchase price. If paying with a mortgage, your lender should give you a loan estimate within three days of receiving your application. This document sets out what your closing costs will be. These fees, however, are not set in stone and subject to change. The title company or your lender should also provide a closing disclosure statement at least three business days before the closing date. This is a more reliable estimate of your closing costs.

Common closing Costs for buyers include:

Appraisal Fee – Covers the cost of a professional evaluation of the home’s value. This may have already been paid when applying for your loan.

Credit Report Fee – A charge for the lender to obtain your credit report, sometimes paid upfront.

Loan Origination Fee – This covers the lender’s administrative costs for processing your loan. It’s typically around 1% of the total mortgage.

Discount Points – Optional fees you can pay to lower your interest rate. Each point equals 1% of your loan amount.

Title Insurance & Fees – Covers the cost of a title search, title examination, and insurance to protect against disputes over property ownership.

Attorney Fees - Real Estate transactions are handled differently in different states. Attorneys are commonly used in NJ but not always used in PA

Private Mortgage Insurance (PMI) – If your down payment is less than 20%, lenders may require PMI, which protects them if you default on the loan. You can usually remove PMI once you reach 20% equity.

Prepaid Interest – Interest you owe from the day of closing until your first mortgage payment. If you close early in the month, this amount will be higher than if you close toward the end.

Escrow Funds – Many lenders require you to prepay property taxes and homeowners insurance into an escrow account. This usually includes one year’s worth of insurance plus a few months’ cushion.

Recording Fees & Transfer Taxes – Local governments charge fees to record the purchase and transfer ownership of the home.

Can You Negotiate Closing Costs?

Yes! Some costs may be negotiable, and in certain cases, you can ask the seller to contribute toward them as part of your purchase agreement.

Every home purchase is unique, and closing costs can vary based on location and loan type. If you have questions, I’m happy to guide you through the process and help you understand what to expect at closing.

Work With Fiona

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.

Let's Connect

Contact Details

Fiona Bradshaw

Phone

(908) 246-0488

Phone

(908) 782-6850

[email protected]

Address

100 Reaville Ave. Ste 100 Flemington NJ 08822

Submit a Message

Middle Name

Name

Phone

Message