Buying your first place in Lakewood and wondering how much cash you need at the closing table? You are not alone. Closing costs can feel confusing, especially when some items are paid up front and others are held in escrow. In this guide, you will learn what New Jersey buyers typically pay, what changes with condos and new construction, and a simple way to estimate your cash to close for a Lakewood purchase. Let’s dive in.
What closing costs include
Closing costs are the one‑time expenses you pay to get your mortgage and transfer the property into your name. In New Jersey, buyers commonly plan for about 2% to 5% of the purchase price in closing costs, not including your down payment. Exact figures depend on your loan program, property type, and choices like title insurance and inspections.
In most New Jersey deals, the seller pays the state Realty Transfer Fee. As the buyer, you still cover lender charges, title work, inspections, escrows, and recording fees. Some costs are negotiable, and certain items can be financed or offset with seller credits within loan program limits.
Typical buyer costs in NJ
Lender fees
- Loan origination or application fee, often a flat amount or about 0.5% to 1.0% of the loan.
- Discount points, optional prepaid interest that lowers your rate. One point equals 1% of the loan amount.
- Appraisal, typically about $300 to $700, depending on property size and complexity.
- Credit report, underwriting, processing, flood certification, and other small verifications that can total a few hundred dollars.
Prepaids and escrows
- Prepaid interest from the closing date to your first mortgage payment.
- Initial escrow deposits for property taxes and homeowners insurance, often 2 to 6 months depending on month of closing and lender rules.
- Private mortgage insurance initial premium or first month if your program requires PMI.
Title, recording, and legal
- Title search and title insurance. A lender’s title policy is usually required. An owner’s policy is optional but commonly purchased and is a one‑time premium based on price.
- Closing attorney or settlement fees. New Jersey often uses attorneys, and fees vary from several hundred to a few thousand dollars based on complexity.
- County recording fees for the deed and mortgage. These are typically modest and vary by document count and county.
Inspections and surveys
- Home inspection, commonly about $300 to $600, plus add‑ons like radon or termite.
- Specialty inspections such as septic or well, when applicable.
- Survey if required by your lender or title company, often a few hundred dollars.
- Local certificates when applicable. Municipalities sometimes charge for tax or code certificates.
Condo and HOA items
- Estoppel or condo certificate fee, often about $100 to $400 or more.
- HOA transfer or move‑in fees.
- Possible lender or management charges to review condo documents.
Other common items
- First year homeowners insurance premium or initial payment.
- Wire and courier fees, or the cost of a certified bank check.
- Moving costs and utility connections, which are not closing fees but are part of your cash plan.
How costs vary by property type
Single‑family detached
- Follows the standard list above.
- Plan for septic or well testing if the home is not connected to municipal services.
- Lenders will escrow property taxes based on the Lakewood and Ocean County tax cycle, so request the latest tax bill for accurate planning.
Condos and townhomes
- Expect estoppel, transfer, application, and occasional move‑in fees.
- Monthly HOA dues count toward your debt‑to‑income ratio, which can affect approval.
- Confirm what the master insurance policy covers and whether you need additional coverage.
- If reserves are low or there are pending assessments, the lender may need extra review.
New construction
- Builders may charge administrative or closing fees that vary by community and are sometimes negotiable.
- You may prepay initial HOA or club dues.
- Timing can differ because of punch list items, certificates of occupancy, or escrow holdbacks.
Co‑ops
- Less common locally, but if you purchase a co‑op, plan for board application fees and approval steps.
- Some co‑ops have flip taxes or unique maintenance prorations.
Estimate your cash to close
Use this simple framework to build a working estimate:
- Down payment. Purchase price times your down payment percentage.
- Buyer closing costs. Use 2% to 5% of the purchase price as a planning range.
- Prepaids and escrows. First year insurance, prepaid interest, and initial property tax and insurance reserves.
- Condo or HOA fees. Estoppel, transfer, and any application or move‑in costs.
- Inspections, appraisal, survey, title, and attorney fees.
- Miscellaneous. Wire or certified check fees and moving.
Illustrative example
- Purchase price: $400,000
- Down payment: 10% equals $40,000
- Estimated buyer closing costs at 3%: $12,000
- Prepaids and escrows estimate: $3,000
- Total estimated cash to close: $55,000
Your real number will depend on your lender, loan program, local recording fees in Ocean County, HOA charges, inspections, and any seller credits.
Ways to manage and plan costs
- Get pre‑approved early. You will learn expected lender fees, PMI rules, and seller credit limits for your program.
- Request a title and closing worksheet from a local title company or closing attorney. This helps you plan for title premiums and county recording costs.
- For condos, ask the association or management for estoppel and transfer fees as soon as you go under contract.
- Verify property taxes for proration and escrow. Ask the Lakewood tax office for the latest bill and billing cycle.
- Confirm how to deliver funds. Ask your closing attorney about wiring or certified checks, and always verify wire instructions by phone using a trusted number.
- Talk with your agent and lender about seller concessions. Ensure any request stays within your loan program limits.
Lakewood and Ocean County checks
- Ocean County Clerk. Confirm current deed and mortgage recording fees and document requirements.
- Lakewood Township Tax Assessor or tax collector. Obtain the latest property tax bill to estimate proration and escrow.
- HOA or condo management. Request exact estoppel, transfer, application, and move‑in fees, and ask about any pending assessments.
- Local title companies and attorneys. Ask for itemized quotes and timelines for delivering certified funds.
When the seller can help
Sellers can offer credits toward your closing costs within loan program limits. Your lender can confirm the cap for your loan type. You can also offset costs with lender credits in exchange for a slightly higher rate, or in some cases finance certain items, which raises your monthly payment and total interest over time.
Final tips before you close
- Plan for 2% to 5% of the purchase price in buyer closing costs, then fine‑tune with quotes from your lender, title company, and attorney.
- Expect higher costs for condos and new construction because of association and builder fees.
- Protect your funds by verifying all wire instructions by phone with a known contact.
If you are weighing a Lakewood purchase and want a clear plan for cash to close, reach out for a tailored walkthrough. You will get a practical, itemized estimate and a strategy to use seller credits wisely. Connect with Monica Capellan to get started.
FAQs
Who pays New Jersey’s Realty Transfer Fee in a Lakewood purchase?
- In most New Jersey transactions the seller pays the state Realty Transfer Fee, while buyers pay their own closing costs.
What is a typical range for buyer closing costs in NJ?
- Many buyers plan for about 2% to 5% of the purchase price, not including the down payment, with exact amounts set by lender quotes and local fees.
How do condo fees affect my closing costs in Lakewood?
- Condos often add estoppel, transfer, application, and move‑in fees, and HOA dues affect your debt‑to‑income ratio and escrow needs.
Can I roll some closing costs into my mortgage?
- Some costs may be financed or offset with lender credits, subject to lender and program rules, which increases monthly payment and total interest.
Can a seller cover part of my closing costs?
- Yes, seller concessions are allowed within loan program limits, so confirm the cap with your lender and align your offer strategy.
When do I need to have funds ready for closing?
- Closing attorneys typically require a wire or certified funds before closing, so confirm timing and payee details in advance and verify wire instructions by phone.
