Buyer Closing Costs In Paramus: What To Expect

Buying a home in Paramus is exciting, but the numbers at the closing table can feel like a moving target. You want a clear, simple picture of what you will actually pay and why. In this guide, you will learn the typical buyer closing costs in Paramus, how Bergen County’s taxes affect your cash to close, and how to budget with a plug-and-play worksheet. Let’s dive in.

Closing costs vs. down payment

Closing costs are separate from your down payment. They include lender fees, title and legal costs, appraisals and inspections, prepaid interest, and the initial escrow deposits for taxes and insurance.

A common guideline for buyers is about 2% to 5% of the purchase price in closing costs. The range varies with your loan type, the property, and your timing. In high tax areas like Bergen County, initial escrow deposits can push the total higher.

What Paramus buyers typically pay

Most buyer costs fall into five buckets:

• Lender and loan fees
• Title, settlement, and legal fees
• Prepaid items and escrow deposits
• Inspections, surveys, and other third-party costs
• Local recording fees and any transfer-related items

Who pays each fee can be negotiated in your contract, but there are local customs. Your lender, title company, and attorney will give you exact numbers.

Lender and loan fees

These are charged by your mortgage lender. You usually pay them unless you negotiate credits.

Common items and ranges

• Loan origination or processing: Often 0.25% to 1.0% of the loan amount, or a flat fee.
• Discount points (optional): Prepaid interest to lower your rate. One point equals 1% of the loan.
• Application, underwriting, processing: Often $200 to $1,000 combined.
• Appraisal: Typically $400 to $900 for a single-family home, more for complex properties.
• Credit report: About $25 to $60.
• Mortgage insurance: Conventional loans with less than 20% down often require monthly PMI. FHA loans include upfront and annual MIP. VA loans may include a funding fee. Some upfront charges can be financed if allowed by the program.
• Prepaid interest: Covers interest from your closing date to the start of your first payment. The amount depends on your loan amount, rate, and closing day of the month.
• Recording fees: Fees to record the mortgage and deed with the county clerk. Expect a few hundred dollars depending on Bergen County schedules.

Title, settlement, and legal fees

In New Jersey, closings are often handled by attorneys and title companies. Expect the following:

• Title search and exam: Often $150 to $500 to check the chain of title.
• Lender’s title insurance policy: Protects your lender for the loan amount. Cost depends on the loan size.
• Owner’s title insurance policy: Protects your ownership. Who pays varies by local custom and negotiation. In many regional transactions, sellers often cover the owner’s policy, but it is not automatic.
• Settlement or attorney fee: Commonly $300 to $1,200 depending on the firm and complexity.
• Courier, wire, and document prep: Often $50 to $300.

Prepaid items and escrow deposits

This is where Bergen County’s property taxes matter. Lenders require money upfront to make sure taxes and insurance are paid on time.

• Homeowners insurance: Many lenders collect the first year’s premium at closing. Get quotes early.
• Initial escrow deposits: Lenders typically collect about two months of property taxes and two months of insurance, plus any amounts needed to stay ahead of the next due date within legal limits. In higher-tax towns like Paramus, this can add noticeably to your cash to close.
• Prepaid property taxes: Prorated based on the closing date and local billing cycles.

Inspections, surveys, and third-party costs

Most buyers pay for due diligence before or at closing.

• Home inspection: Typically $300 to $800 depending on size.
• Specialty inspections: Radon, pest, septic, well, sewer, roof, or HVAC are often $100 to $500 each if needed.
• Survey: Sometimes required by your lender or recommended for clarity. Often $300 to $1,000 or more.
• HOA or condo fees: Transfer fees and resale certificates commonly range from $100 to $400 for documents. Transfer fees vary by association.

Local taxes and transfer-related items

New Jersey has a state realty transfer fee that is part of many transactions. In practice, sellers commonly pay transfer-related fees, but it is not guaranteed. Terms are set by your contract and local custom.

Bergen County recording and municipal search fees are usually a few hundred dollars. Your attorney or title company will confirm exact amounts.

Paramus specifics to keep in mind

• Higher property taxes: New Jersey property taxes are among the highest in the country. In Paramus and greater Bergen County, expect larger initial escrow deposits and a higher monthly tax component.
• Closing professionals: Attorneys often play a direct role in New Jersey closings, which influences fee structures and who issues the final settlement statement.
• Recording and municipal requirements: Fees vary by county and municipality. Your closing team will outline the required searches and certificates.
• Flood and insurance: Paramus is inland, but parcel-level flood risk varies. If your property lies in a flood zone, lenders and insurers may require flood coverage, which adds to ongoing costs.

How to lower your cash to close

You have options to manage out-of-pocket costs.

• Shop lenders: Compare interest rates and fee structures. Even small differences can save you hundreds to thousands.
• Negotiate seller concessions: Ask the seller to cover allowable buyer closing costs. Limits depend on loan type.
• Time your closing: Closing later in the month typically reduces prepaid interest.
• Finance what you can: Certain upfront mortgage insurance fees can be financed if your program allows.
• Get firm quotes early: Ask for a Loan Estimate from your lender and a fee quote from your title company or attorney.

Plug-and-play closing cost worksheet

Use this to estimate your cash to close. Replace the placeholders with your numbers. Your lender and title company will confirm actual amounts.

Total cash to close = Down payment – earnest money credit + sum of all other buyer costs above.

Tip: In Paramus, be conservative with your escrow estimates for property taxes. It is better to budget a little high and be pleasantly surprised.

What to do next

• Ask two lenders for Loan Estimates so you can compare interest rate, APR, and fees.
• Request a fee quote from your title company or attorney.
• Talk through local custom on the owner’s title policy and transfer fees so you know what to expect before you write an offer.

If you want a clear number and a smooth closing, connect with a local pro who knows the Bergen County process inside and out. Reach out to Christoulla Crawford for guidance tailored to your price point, loan type, and timeline.

FAQs

How much are buyer closing costs in Paramus?

• A common guideline is about 2% to 5% of the purchase price for buyer-side closing costs, with higher totals possible when taxes and escrow deposits are large.

Who pays the New Jersey realty transfer fee on a Paramus home?

• Transfer fees are often paid by the seller in this region, but it is negotiable and should be spelled out in your contract.

Why is my escrow deposit so high in Bergen County?

• New Jersey property taxes are high compared with many states, so lenders collect larger initial escrow deposits to cover upcoming tax bills and a small cushion.

How much will title insurance cost me as a Paramus buyer?

• You typically pay the lender’s policy. The cost depends on the loan amount. The owner’s policy cost is based on price, and who pays is set by local custom and negotiation.

How can I reduce my cash to close on a Paramus purchase?

• Compare lenders for lower fees, request seller concessions within loan limits, schedule a late-month closing to reduce prepaid interest, and finance allowable fees when permitted.