Buying a home is exciting — but beyond the down payment and mortgage, there are several lesser-known expenses that can catch buyers off guard. Here’s what to plan for:
1. Home Inspection Fees
- Cost: $400-$800+
- A thorough home inspection helps uncover potential issues before you commit to the purchase. This is an out-of-pocket expense paid upfront by the buyer. It’s strongly recommended to include additional services such as an oil tank sweep, wood-destroying insect (WDI) report, and a radon test as part of the inspection process.
2. Appraisal Fee (Processed by lender)
- Cost: $400–$700
- Required by lenders to confirm the home’s value before issuing a loan.
3. Attorney Fees (Paid at closing)
- Cost: $1,500–$2,500
- Covers contract review, negotiations, and closing coordination.
4. Title Search & Title Insurance (Processed by Attorney)
- Cost: $3500–$7,500
- Standard NJ Cost- Ensures the property has no legal ownership issues and protects you the buyer against future claims.
5. Homeowners Insurance( Buyer will obtain insurance quotes )
- Cost: $800–$1,500/year (required by most lenders)
- Protects against fire, theft, and other risks.
6. Property Taxes (Processed by Attorney)
- Varies by town/county
- Prepay one quarter (3 months) of property taxes at closing. This acts as a security deposit held by the municipality—similar to how a landlord holds a security deposit when renting a property.
7. Private Mortgage Insurance (PMI)(Processed by lender)
- Required if putting down less than 20%
- Typically 0.3%–1.5% of loan annually.
- Moving Costs
- Cost: $500–$3,000+
- Don’t forget about movers, storage, and utility deposits.
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Sample Home Purchase Breakdown
Purchase Price: $650,000
Down Payment (5%): $32,500
Estimated Closing Costs (2.5%): $16,250
Total Estimated Upfront Cost:
$32,500 (Down Payment) + $16,250 (Closing Costs) = $48,750
Pro Tip:
In addition to your down payment, plan to budget an extra 2.5% of the purchase price for closing costs. Being financially prepared helps avoid surprises and ensures a smoother, stress-free closing.
The Team Behind Your Home Purchase
We work with a network of seasoned, trusted professionals—from lenders to inspectors—ready to assist you throughout your home buying journey. Take all the time you need to find the right home. Once you’re ready, we’ll be by your side to make the process seamless and successful.
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Home Inspector
All State Home Inspection
Joseph Monaco
973-943-5593
Trusted NJ Inspectors | 20+ Years of Experience
Real Estate Attorney-Rochelle Park, NJ 07662
Kenneth Samson, Esq. 973-390-1267
Colleen Faronea(Paralegal)
Serving NJ Buyers with Integrity | 47+ Years of Legal Experience
Lenders
All with 20+ years of experience helping you find the right mortgage.
AnnieMac Home Mortgage – Rutherford, NJ
Nick Pourakis 917-929-4109
Ray Sewnath 201-388-2494
Columbia Bank – Fair Lawn, NJ
Nuno Poitevini 201-310-4107
Movement Mortgage – Totowa, NJ
Dawn Marie LoGatto (201) 906-8682