Budgeting for LBI Real Estate Closing Costs
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Long Beach Island Real Estate Closing Costs 
Long Beach Island Real Estate Closing Costs 
Long Beach Island Real Estate Closing Costs
Long Beach Island Real Estate
It is no doubt that buying a home on Long Beach Island is expensive! In conjunction with the purchase price of the house, all buyers have to plan for Long Beach Island real estate closing costs. There can be a surprisingly wide variation in the total cost of this category, but they usually range from between 2% and 4% of the transaction. These costs can be a sizeable amount of money and one that impacts the overall investment made in the home on LBI. Closing costs can generally be broken into three categories:
- Mortgage and lending fees
- Title insurance and title charges
- General expenses such as survey, attorney, inspection, etc.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Long Beach Island Real Estate Closing Costs
Lender fees can be challenging to estimate as they will vary depending on the bank or mortgage institution, the type of loan, and the current lending environment. Some lenders, for example, will charge a point or more (which equates to 1% or more of the loan amount) paid at closing to lower the interest rate. Some lenders will offer credits (and others will not) for application fees. Every bank will require an appraisal that will run between $500 and $1,500 on average. When estimating your closing costs for an LBI real estate transaction, it is best to speak directly with a lender to get as specific a number as possible. Title insurance and the related charges will be tied to the purchase price of the home. Title insurance is essential for all real estate transactions and usually runs several thousand dollars or more. There will often be settlement fees charged by the title company. Lastly, there are various expenses that will be charged, depending on the nature of the transaction. The most significant of which is the New Jersey mansion tax, which is 1% of the purchase price for any sale over $1,000,000. As an example, if you were to purchase a $2,000,000 home, at closing, you would have to pay $20,000 to the State of New Jersey. Additionally, it is recommended that you hire an attorney, usually between $1,000 and $2,000, you will need a survey, generally between $600 and $1,500, and depending on the nature of the transaction, a home inspection, tank sweep, etc. These costs add up quickly and usually result in a total closing cost of between 2% and 4% of the transaction price depending on how it is structured.
Budgeting for LBI Real Estate Closing Costs
When buying a home on Long Beach Island, it is essential to understand all the costs and expenses of purchasing AND owning a home. Things like flood insurance and taxes, for example, can add up to thousands of dollars a year in carrying costs and can impact a homeowner’s budget. There are many steps to buying a home, and I am here to help you understand them all. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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