Home Buying in 07030>Question Details

Mark, Real Estate Pro in 07030

Closing costs

Asked by Mark, 07030 Tue Dec 16, 2008

What are the closing costs on average in Hoboken? Does it makes sense to get a lawyer from JC to save some money?

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I recommend that buyers budget 2% of the purchase price for the "closing costs". I use quotations because the term "closing cost" leads most people to think of it as an extra cost or expense in addition to the price of the property. In fact, usually less than 1% that is actually an expense or "cost", consisting of your attorney fees, title insurance and condo fee for move-in/move-out. More than half of the closing costs will actually be advance payment of some taxes and mortgage...which you know you have to pay anyway but they need to be paid at the time of closing. If the value of the property is north of $1M, the buyers will have to pay an additional 1% tax to the state of NJ. I don't think it makes sense to get an attorney in Jersey City to save money, you can use any real estate attorney you choose but I recommend using the best one you can find (based on referrals) as the cost won't be dramatically higher but could have a big impact on you financially should something go wrong in the process. My guess is that the premium for the best attorney will only be $200-$300, a small price to pay for a reliable professional to protect you for such a major financial transaction!
0 votes Thank Flag Link Tue Mar 30, 2010
First of all, it’s the costs to the lenders for their fees, (banks are always cheaper by a couple thousand dollars usually), which are lender fees (application fee, origination, mortgage insurance, if you borrowed 90% or more, appraisal fees).

Then there are the title costs which are the next highest items, $500 per thousand and approximately $300 for title search and endorsements.

In addition, there is your home inspector, surveyor, if necessary, attorney fee, cost of recording Deed and Mortgage and Notice of Settlement (estimate – $350) and surprise, surprise, finally the extra advance payments of taxes (usually 3 months, but can be 4, so take one-third of yearly taxes), and then there is about a month of mortgage interest.

If you estimate $10,000 for a house about $400,000, you’ll be close.
0 votes Thank Flag Link Thu Mar 11, 2010
Hi Mark! Yes, 2 points of purchase price is right but it will vary depending on taxes, maintenance, attorney etc etc which everyone has answered here. As for hiring an out of town attorney, I've succesfully closed transactions using attorney's that were in Jersey City and West New York on time, and I completely understand the need for saving money! While yes a local attorney is ideal because they are familira with certain buildings, might already have relationships with management companies and so on, using someone that is well versed in Hoboken is ok. I would however just say that make sure they have been referred to you by someone you know and trust who has used them recently and closed successfully and to ask them if there was anything that they were unhappy with during the transaction so you know what to expect.
I'm happy to forward you my contacts if you decide. Best of luck to you!
0 votes Thank Flag Link Tue Jul 7, 2009
Hi,

I still think you are better off with a Hoboken lawyer, notice that everyone who answered your question from Hoboken strongly urged you to go for a Hoboken lawyer. How much will you save? My lawyer cost me $1200, and don't forget the lawyer fees are tax deductable, so a few hundred dollars will come back to you. That in mind, is it worth it? Here's my lawyer details if you're interested: Edward S. Danhires, Esq., phone: (201) 418-0070 . Whether Ed or someone else, just get a Hoboken lawyer.
0 votes Thank Flag Link Wed Dec 17, 2008
The closing costs will vary.. Eric is correct: The general rule is to expect closing costs to be around 2% of the sale price, to be safe. Much of the cost depends on how much taxes you'll have to pay up front, and on your maintenance deposit to the condo association. Lawyer fees, title search/insurance, inspections, and other items are usually pretty fixed

The JC attorney does not make a difference.. it is right next door.
Go with the JC attorney if it will save you some bucks.
0 votes Thank Flag Link Tue Dec 16, 2008
The general rule is to expect closing costs to be around 2% of the sale price, to be safe. Much of the cost depends on how much taxes you'll have to pay up front, and on your maintenance deposit to the condo association. Lawyer fees, title search/insurance, inspections, and other items are usually pretty fixed.

The closing date also affects closing costs. You may be paying for 1-2 quarters worth of taxes on your closing, depending on the month you close.

Your best bet is to speak to a Hoboken real estate lawyer, and I recommend Brian Kappock ((201) 659-5555). Many of my clients have worked with him and his expertise is very solid. He's not the cheapest, but it's worth it. A JC lawyer may save you a few hundred dollars, but the quality of service won't make you happy. Buying a home is a serious affair, and skimping on the lawyer can cost you. A good lawyer will also ensure the deal goes through quickly and with minimal (or no) glitches.

Let me know if you need more info or help, and good luck.

Eric J.
0 votes Thank Flag Link Tue Dec 16, 2008
Hi! I'm a homebuyer myself, and I HIGHLY recommend getting a Hoboken lawyer to get the deal done on time. I got one and I can't tell you how happy I am with his services. The Hoboken market is a micro market on its own and to be honest it's like swimming with the sharks; so you have to have someone tough to do it on your behalf.

For me, my lawyer did two things:
1- He closed the deal in a very aggressive 30 day timeframe as I requested
2- He got the deal done. On my closing day the bank backed out, my lawyer was on the phone nonstop with the mortgage company (also a Hoboken company) and basically got me that note to sign and close. My closing was on a Friday and I would have been delayed for THREE DAYS if it didn't go through. We closed on Friday at 5 PM

I hope this helps.

Oh closing costs for my 1 BR condo came out to be close to $9K, between lawyer fees, inspection, mortgage fees, escrow account deposites, and a lot of other fees lol.
0 votes Thank Flag Link Tue Dec 16, 2008
Closing costs is based on overall sales purchase price for home. Your mortgage broker will provide you info. Buyers agent could request for seller make contribution towards your closing fees. These fees must be in you sales executed contract between buyer/seller. Title company must honor all authored terms and conditions in sales contract.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 16, 2008
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