Lender charges
Origination or underwriting fees, any points you choose to pay to lower the rate, the appraisal and the credit report. Compare the official Loan Estimate from two or three lenders. It’s a standard form, so the fees line up side by side.
Title and settlement
Title insurance protects the lender (and, if you buy an owner’s policy, you) against title defects. The title company also handles the search, the survey if ordered, and the settlement. Ask your attorney for a title quote early.
Attorney and inspections
Most NJ buyers pay a real estate attorney for contract review and closing. Inspections typically include a general home inspection and often radon, termites and an oil-tank sweep on older homes.
Escrows and prepaids
Lenders usually collect a few months of property tax and homeowners insurance into an escrow account, plus your first year of insurance and the interest from closing day to month-end. Because NJ taxes are high, the tax escrow can be one of the largest lines.
Transfer fees: who pays now
In New Jersey the seller is legally responsible for the Realty Transfer Fee. Since July 10, 2025, the seller is also responsible for the Graduated Percent Fee on transfers over $1 million, which used to be the buyer’s “mansion tax.” Contracts can still shift costs, so read yours with your attorney. See the graduated percent fee explained.
Build your own estimate
The NJ buyer closing cost calculator lets you plug in your own quotes and uses your town’s effective tax rate for the escrow.
Questions, answered
Does the buyer pay the mansion tax in NJ?
Not anymore by default. Since July 10, 2025, New Jersey places the Graduated Percent Fee on transfers over $1 million on the seller, though the parties can negotiate who bears costs.
Can closing costs be rolled into the loan?
Some can be covered by seller credits or lender credits in exchange for a higher rate. Ask your lender what your program allows.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.