Saved up your down payment and ready to start your Morris County or Sussex County home search? First, make sure you've saved enough for your closing costs!

Closing 101
“Closing costs, also called settlement fees, need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.” --Freddie Mac

Many first-time homebuyers wish they'd known closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.

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Some possible closing cost fees/costs, depending on the location of the home you wish to purchase:

  • Government recording costs
  • Appraisal fees
  • Credit report fees
  • Lender origination fees
  • Title services (insurance, search fees)
  • Tax service fees
  • Survey fees
  • Attorney fees
  • Underwriting fees

Quieting the Closing Cost
Work with your lender and Team Nest Builder real estate agent to determine ways to decrease or defer your closing costs. There are no-closing mortgages available, but they end up costing you more in the end with a higher interest rate, or by wrapping the closing costs into the total cost of the mortgage (meaning you’ll end up paying interest on your closing costs). Morris County or Sussex County home buyers can also negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees to get the deal finalized, which is known in the industry as ‘seller’s concession.’

Bottom Line
Speak with your lender and Team Nest Builder agent early and often to determine how much you’ll be responsible for at closing. Finding out you’ll need to come up with thousands of dollars right before closing on your new Morris County or Sussex County home? Not a pleasant house-warming gift.