Worried about surprise fees at the closing table in Paramus? You’re not alone. Between lender charges, title work, attorney fees, and New Jersey’s transfer fee, it can feel like a maze. This guide breaks down what you’ll likely pay, who typically pays what in New Jersey, and how to budget with confidence for a Paramus closing. Let’s dive in.
What closing costs cover
Closing costs are the services and prepaid items needed to transfer ownership and finalize your loan. They include lender and title fees, attorney fees, recording charges, and prorated taxes. For a helpful national overview of typical items, review the Consumer Financial Protection Bureau’s guidance on closing costs.
Who pays what in New Jersey
In New Jersey it’s customary for both buyers and sellers to hire real estate attorneys to review contracts and attend closing. You’ll see their fees on the settlement statement. The New Jersey State Bar Association explains the attorney’s role in real estate closings.
What buyers typically pay
- Lender-related fees if you finance the purchase: application, underwriting, origination, and any discount points.
- Appraisal, credit report, and inspections.
- Title search and lender’s title insurance policy. An owner’s policy is optional but recommended for your protection. The American Land Title Association offers a clear overview of title insurance.
- Attorney fees for your counsel.
- Recording fees for the deed and mortgage at the Bergen County Clerk, plus prepaid items like property taxes, mortgage interest, and homeowners insurance.
- Initial escrow deposits for taxes and insurance if your lender requires them.
What sellers typically pay
- Brokerage commission by local custom, usually a negotiated percentage of the sale price.
- The New Jersey Realty Transfer Fee, which is a state fee tied to sale price and set by the New Jersey Division of Taxation.
- Seller’s attorney fees.
- Recording and lien release fees and any costs to obtain mortgage payoffs.
- Applicable condo or HOA transfer and resale package fees if your property is in an association.
Buyer closing costs in Paramus
Buyers in New Jersey commonly pay about 2% to 5% of the purchase price in closing costs, excluding the down payment. In Paramus and greater Bergen County, plan for the following line items:
- Lender fees: vary by lender and loan program.
- Appraisal: commonly 300 to 700 dollars.
- Credit report: typically 25 to 50 dollars.
- Title work and lender’s title insurance: charged at closing; owner’s policy is a one-time optional purchase.
- Buyer’s attorney: often about 800 to 2,000 dollars depending on complexity.
- County recording and clerk charges: the deed and mortgage are filed with the Bergen County Clerk. Check the Bergen County Clerk site for current recording fee schedules.
- Prepaid items: first year of homeowners insurance if required, prorated property taxes, and prepaid mortgage interest based on your closing date.
- Escrow deposits: most lenders collect several months of taxes and insurance to fund your escrow account.
- Inspections and surveys: home inspection usually 300 to 600 dollars, specialty tests as needed, and a survey if required (about 300 to 1,000 dollars).
- HOA or condo fees: for condo and townhome purchases, plan for an HOA resale or estoppel package. In Paramus these packages and processing fees often run 150 to 400 dollars, though amounts vary by association and are negotiable per your contract.
Paramus tip: Property tax proration can be a noticeable line item because Bergen County property taxes are relatively high. Ask your lender and attorney to review recent tax bills and estimate your escrow needs well before closing.
Seller closing costs in Paramus
Sellers typically cover brokerage commission and another 1% to 3% of the sale price in additional closing costs. Expect these items:
- Brokerage commission: usually negotiated as a percentage of the sale price.
- New Jersey Realty Transfer Fee: by custom the seller pays it. Use the New Jersey Division of Taxation’s schedule to estimate your amount early.
- Seller’s attorney: often about 800 to 2,000 dollars depending on the file.
- Payoff and lien discharge: fees to obtain mortgage or lien payoffs and record releases.
- Recording and deed preparation: county-level recording fees depend on the number of pages and documents.
- HOA or condo fees: the seller often pays for the resale or estoppel package and any unpaid assessments, though this can be negotiated.
- Municipal items: confirm whether Paramus requires any certificates or local inspections. Start with the Borough of Paramus website to check current procedures.
Seller tip: Order your payoff statements as early as possible. Payoffs can expire, which may force last-minute updates and delays.
HOA and condo resale fees
If you’re buying or selling a condo or townhome in Paramus, plan ahead for association documentation:
- Resale or estoppel package: typically includes rules, bylaws, current assessments, owner ledgers, and certification of no violations. Common range: 150 to 400 dollars.
- Transfer or administrative fees: some associations charge 50 to 300 dollars at resale.
- Turnaround time: some associations respond within days, others take weeks. Slow estoppel packages are a common cause of closing delays. Ask for timelines early.
- Outstanding balances: unpaid maintenance fees or assessments are usually collected at closing or escrowed according to association rules.
How much to budget
Every file is unique, but these planning ranges can help you set expectations.
Scenario A: Purchase price 350,000 dollars
- Buyer: about 2% to 5% equals 7,000 to 17,500 dollars
- Seller: about 1% to 3% equals 3,500 to 10,500 dollars plus commission and the Realty Transfer Fee
Scenario B: Purchase price 600,000 dollars
- Buyer: about 2% to 5% equals 12,000 to 30,000 dollars
- Seller: about 1% to 3% equals 6,000 to 18,000 dollars plus commission and the Realty Transfer Fee
Scenario C: Purchase price 900,000 dollars
- Buyer: about 2% to 5% equals 18,000 to 45,000 dollars
- Seller: about 1% to 3% equals 9,000 to 27,000 dollars plus commission and the Realty Transfer Fee
Note: The Realty Transfer Fee is a graduated schedule based on the final sale price. Confirm your amount on the New Jersey Division of Taxation website.
How to get a clear estimate
You can pin down your numbers early with a few simple steps.
- Ask your lender for a written Loan Estimate and, later, a Closing Disclosure. Compare line items and ask about any changes.
- Request an itemized closing cost quote from your title company and attorney.
- Verify who pays each HOA fee in your purchase contract. If you’re in an association, request the resale or estoppel package as soon as you go under contract.
- For accurate county recording charges, check the Bergen County Clerk’s current fee schedule.
- If you’re the seller, estimate your Realty Transfer Fee using the New Jersey Division of Taxation schedule and include it in your net proceeds planning.
- If your closing might require municipal documents, review the Borough of Paramus site or call the municipal office to confirm the latest requirements.
Timing and negotiation tips
A few proactive moves can save you stress and money.
- Shop lenders and compare origination and discount points. Ask for lender credits.
- Ask your attorney for an engagement letter that outlines services and expected fees.
- Start HOA resale documents and mortgage payoff requests early to avoid closing delays.
- Clarify in the contract who pays HOA transfer and estoppel fees. This is negotiable.
- Schedule inspections promptly so any issues can be resolved before closing day.
Local resources you can trust
- New Jersey Division of Taxation: learn about the Realty Transfer Fee and seller obligations.
- Bergen County Clerk: recording procedures and current fee schedules.
- Consumer Financial Protection Bureau: plain-language guides to closing costs and disclosures.
- New Jersey State Bar Association: understand how attorneys help protect you in a NJ closing.
- American Land Title Association: what title insurance covers and why it matters.
- Borough of Paramus: municipal contacts and links for local certificates or inspections.
Ready to run the numbers on your specific property and loan? You do not need to guess. Get a local, itemized estimate and walk into closing with confidence. If you want a personalized breakdown and strategy for your Paramus purchase or sale, connect with Christoulla Crawford for guidance from contract to keys.
FAQs
What are typical buyer closing costs in Paramus?
- Buyers commonly pay about 2% to 5% of the purchase price, which includes lender fees, title work, attorney fees, prepaid taxes and insurance, and county recording charges.
Who pays the New Jersey Realty Transfer Fee?
- By local custom the seller pays the Realty Transfer Fee, which is based on a graduated state schedule set by the New Jersey Division of Taxation, though the contract can specify otherwise.
How are property taxes handled at closing in Paramus?
- Property taxes are prorated so each party pays their share for the period they own the home; buyers often fund an escrow account for taxes and insurance at closing.
Do you need an attorney to close in New Jersey?
- It is customary and strongly recommended for both buyers and sellers to hire a real estate attorney for contract review, coordination with title, and attendance at closing in New Jersey.
How can buyers reduce closing costs?
- Compare lender quotes, ask for lender credits, schedule inspections early, and review the Loan Estimate and Closing Disclosure to question any unexpected fees.
How long do HOA resale documents take in Paramus?
- Turnaround varies from a few days to several weeks depending on the association; request the resale or estoppel package as soon as you go under contract to avoid delays.
