In New Jersey, the borrower will typically pay a variety of fees at the time of closing. These specific fees will depend on the loan program and the lender, but some common fees include:

1. Down Payment: The borrower will typically be required to make a down payment on the home. The amount of the down payment will depend on the loan program and the borrower’s credit score.
2. Closing Costs: These are the costs associated with processing and closing the loan, including fees for things like title insurance, appraisal, and credit report.
3. Prepaid Items: These items are paid by the borrower in advance. They can include property taxes and homeowner’s insurance.
4. Points: In certain instances, the borrower is required to pay “points” to the lender, which is a one-time fee to lower the interest rate on the loan.
5. Escrow Deposit: The borrower will be required to deposit an amount into an escrow account to cover future payments such as property taxes and insurance.
6. Mortgage Origination Fee: This is a fee charged by the lender in connection with the processing of the loan.

It’s important to keep in mind that many of the above closing costs can be negotiated and/or be financed into the loan. It is critical that you have a detailed breakdown of the closing costs from the lender. This should be reviewed by a real estate attorney prior to signing any documents related to the closing.

If you are interested in purchasing or selling a home, or if you have any related questions call us today at (973) 500-8024 or (212) 960-8308, or submit your contact information below and we can contact you directly.