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Jeremy Gulish's Blog

By Jeremy Gulish | Agent in Morristown, NJ

Getting to know closing costs

Closing costs for the purchase of a new home can seem pretty scary as the costs start to add up.  First time home buyers are often confused and concerned by the amount they need to pay at closing when purchasing a home.  As a good rule of thumb, closing costs tend to end up being between 3-5% of a homes purchase price. 

Various fees come into play with a home purchase including dues to your attorney, mortgage fees, inspection costs, and prepayments to your mortgage, insurance and taxes.  While many fees are service-based such as the cost to pay your lawyer and inspector, the money paid toward your taxes, insurance and mortgage allows for a little breathing room before taking out your checkbook again after you close on your home.  Depending on what day of the month you close on your home, buyers will have at least one month before they need to make a mortgage payment.  Taxes are prepaid up to three months and home insurance is paid for a year in advance. 

While it may feel like a huge check to write, buyers need to realize that many of the fees are simply prepayments for fees they would have been responsible for anyway.  For those first time home buyers or even veteran buyers who are looking to move up but struggle to handle the burden of a large downpayment for a mortgage and the closing costs, they can consider making offers on homes that ask for the sellers to contribute money toward their closing costs.  FHA allows for sellers to pay up to 6% of the home buyer's closing costs. 

For more information on closing costs, check out this helpful guide for the approximate fees associated with the closing costs when buying a home.

Happy House Hunting,

Jeremy Gulish

Keller Williams Towne Square Realty

Cell: (908) 303-0926; Office: 908-766-0085; Fax: 908-766-2254

55 Madison Avenue, Suite 400  Morristown, NJ 07960

Website: OpeningDoorsNJ.com; Facebook: Morristown NJ Real Estate

Linked In: JeremyGulish Twitter: @MorristownAgent Email: jgulish@kw.com

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