I think I got your question. However, It requires some more clarification.
You can contact me at my Cell# 732-277-9321 to assist you better.
It is best if you give a particular property address or at the bare minimum the price of the property that you are purchasing and where it is located. There are many things that go into closing costs including: lender fees, title costs, the escrow amount that your lender is requiring for taxes and insurance, attorney fees, and any condo or home owner association capital contributions. You will also be responsible to reimburse the seller for the prepayment of condo/home owner association fees, water, sewer, heating fuel, and taxes. If the property being purchased is priced at 1 million or above and it is located in NJ, the buyer will pay 1% of the purchase price as an added closing cost. As you can see, there are a lot of variables so more specifics are really needed to give you proper guidance. If you are working with a Realtor they should be able to give you an approximate value taking these things into consideration.
Should you need further assistance feel free to contact me at:
609-352-5232 or JTome@TomeHomeNetwork.net
The current owner has typically paid these in advance to the end of the next quarter so the amount of reimbursement to the current owner is proportional to the number of days that remain in the quarter after you close. Next is Pre-paid interest. Interest is earned by a bank only at the end of the payment period but the bank collects in advance for the fraction of the current payment period that remains after the closing date so that the bank can begin earning interest at the 1st day of the next payment period which is usually the first of the month. The banks like to have all payment periods start on the first day of the payment period which is usually monthly but could be twice a month on some payment options. There is usually no payment due on the first day of the first month after closing since no interest is earned or due until the end of that month and therefore due on the first of the second month of the mortgage.
The second part of these first 3 parts of the closing costs is money due to be paid to the bank towards your escrow account. This is usually 3 months of taxes so that the Bank can have sufficient funds to pay the next quarterly tax payment without counting on the accumulation of the escrow funds from your monthly payments.
This is especially true because your first payment and first monthly escrow payment is not due until the second month of the mortgage and the banks typically pay the quarterly tax payment 15 to 30 days before the start of the quarterly tax period to ensure on time payment. This coupled with the fact that your first payment may be late because your payment book may have been delayed and you forgot that the payment is due regardless of whether the payment book has been sent or not. The banks want to play it safe. They also do the same for any monthly condominium or home association fees.
The fourth set of costs are actual immediate costs such as attorney fees, document preparation and registration fees mortgage origination fees, mortgage application fees, cost of one full year of pre-paid home owners insurance, Overnight Delivery Fees to pay off the current mortgage, one time capital contributions to condominium and/or home owner's association, and various other miscellaneous fees.
In New York State the closing entity (attorney or abstract company) is permitted by law to add their processing costs to these fees. In New Jersey this is strictly forbidden by law and the closing entity can collect ONLY actual costs for these various fees Most attorneys charge a one time Fee for a closing that includes reviewing the offer contract and negotiating the offer with the sellers attorney including negotiating reimbursement for costs for any repairs needed as a result of the home inspection, radon inspection and termite and mold inspections BUT not including any the aforementioned miscellaneous document fees.
I have been a certified financial planner and can assist you not only with buying or selling a property but also with all of the financial aspects of buying or selling including finding you the lowest mortgage rates and mortgage agents who guarantee an on time closing
Regards, Cy Gaydos, Realtor Associate, RE/MAX Greater Princeton. RE/MAX is the largest real estate broker in the North America and the one with the largest number of experienced real estate agents
Call me at 1-609-509-0777 or contact me at RealEstate@CyGaydos.com
You can send me an email at firstname.lastname@example.org with your direct question or call me at 732-766-2820.