Buying a home in Westfield is exciting, but the line items on your final statement can feel like alphabet soup. If you’ve heard that closing costs are “a few percent,” you may still wonder what that really means for your budget in Union County. You want a clear number, no surprises, and a plan.
This guide walks you through what buyer closing costs include, typical ranges in New Jersey, how to estimate your cash to close, and how to read the lender forms that drive the final figures. You will also get local tips for Westfield so you can prepare with confidence. Let’s dive in.
Closing costs vs. your down payment
Your down payment is your equity. Closing costs are the fees and prepaid items needed to get the loan and transfer ownership. These are separate buckets.
- Across the U.S., buyers often see total closing costs of about 2% to 5% of the purchase price. This does not include your down payment. You can review national guidance in this Bankrate overview of closing costs.
- The exact number depends on your loan type, interest-rate points, property taxes, insurance, and who pays certain line items per your contract.
- Your lender’s Loan Estimate and Closing Disclosure will show your specific figures. The Consumer Financial Protection Bureau explains both documents on its Owning a Home site.
Common NJ buyer costs in Westfield
Below are the line items buyers in Westfield and Union County often see. Your contract and loan program will determine which apply.
Lender fees and appraisal
- Origination or application fee. Sometimes stated as a percentage of the loan amount, often 0.5% to 1.0%, or as a flat fee.
- Underwriting, processing, credit report, flood certification, and tax-service fees. Often a few hundred dollars in total.
- Discount points. Optional fee to buy down your interest rate. One point usually equals 1% of the loan amount.
- Appraisal. Commonly $400 to $900 in the NY/NJ metro area, depending on property size and complexity.
- PMI. If you put less than 20% down on a conventional loan, you may have monthly private mortgage insurance or an upfront premium.
Title search, title insurance, and recording
- Title search and exam. The title company researches public records for liens or claims.
- Lender’s title insurance policy. Protects the lender. Premium is typically collected at closing.
- Owner’s title insurance policy. In New Jersey it may be paid by buyer or seller depending on contract and local custom. Confirm in your offer.
- Recording fees and clerk charges. Union County collects fees to record the deed and mortgage. Check current procedures on the Union County official site.
Attorneys and NJ attorney review
- New Jersey contracts typically include an attorney review period shortly after signing. Many buyers hire an attorney to review the contract and handle closing.
- Attorney fees vary by firm and complexity. Budget several hundred to over a thousand dollars. You can read about attorney review customs through New Jersey Realtors.
Prepaids and escrow reserves
- Prepaid interest. Covers interest from your closing date until your first mortgage payment.
- Homeowners insurance. Lenders require proof of coverage and often collect the first year’s premium at closing, plus a few months for your escrow account.
- Property taxes and proration. Taxes are prorated between buyer and seller. Lenders usually collect a few months of taxes into escrow. Find tax calendars and billing info with the Town of Westfield Tax Collector.
Inspections and certifications
- General home inspection, plus radon, termite, sewer scope, or other specialized inspections as needed. Expect a few hundred to over one thousand dollars total, depending on scope.
HOA and condo fees
- Application, transfer, estoppel, or move-in fees, plus any prepaid dues required by the association. Amounts vary by building or community.
Other possible items
- Survey if required, municipal searches or certificates, utility transfer or courier fees, and settlement or wire fees. These vary by property and provider.
How to estimate your cash to close
A simple way to plan is to use a conservative percentage, then refine with your lender’s estimates.
- Cash to close = down payment + closing costs + prepaids and escrow reserves − any seller or lender credits.
- As a rule of thumb, start with 3% to 5% of the purchase price for closing costs and reserves, then adjust once you receive your Loan Estimate.
Here are sample scenarios to show the math. These are not quotes, just illustrations to help you plan.
Scenario A: Westfield home at $700,000
- Down payment, 20%: $140,000
- Closing costs, 2.5%: $17,500
- Prepaids and escrow, 2 months: $3,500
- Estimated cash to close: $161,000 before any credits
Scenario B: $1,000,000 purchase with 10% down
- Down payment: $100,000
- Closing costs, 3%: $30,000
- Prepaids and escrow, 2 to 3 months: $5,000
- Estimated cash to close: $135,000
Scenario C: $600,000 with 3.5% down (FHA or low-down conventional)
- Down payment: $21,000
- Closing costs, 3%: $18,000
- Prepaids and escrow: $3,000
- Estimated cash to close: $42,000 plus any program-specific upfront mortgage insurance if applicable
Tip: Lower down payments reduce upfront equity but can raise monthly costs through PMI or program fees. If you plan to request a seller credit to offset costs, confirm lender limits on concessions.
Read your Loan Estimate and Closing Disclosure
These two documents are your roadmap. The forms and timelines are explained on the CFPB’s Owning a Home hub and the CFPB page on mortgage closing.
What to review line by line
- Loan costs. Origination charges, points, and services you cannot shop for versus can shop for.
- Other costs. Taxes and government recording fees, prepaids, and initial escrow deposits.
- Cash to close. The summary near the end shows your total funds to bring to closing.
- Loan terms. Interest rate, APR, loan type, and monthly payment.
- Credits. Confirm any negotiated seller credits or lender credits appear correctly.
Red flags to question early
- Large, unexplained increases from your Loan Estimate to your Closing Disclosure.
- New fees that appear late.
- Any wire instructions that differ from those provided earlier. Always call your attorney or title company using a known phone number to verify wiring details. Do not rely on email alone.
- Errors in tax proration or HOA charges. Ask for the latest tax bill and association statement to verify.
How to compare loan offers
- Look at APR to understand the total cost of financing.
- Compare points to potential monthly savings based on how long you plan to hold the loan.
- Consider service and clarity along with price. Accurate, timely estimates help you avoid last-minute surprises.
Local steps to avoid surprises
A little homework early in the process goes a long way in Westfield and Union County.
- Confirm Westfield’s current tax schedule and recent bills with the Town of Westfield Tax Collector. You will use these to estimate escrow needs and prorations.
- Ask your title company for a written quote for title search, title insurance, and settlement fees. The New Jersey Department of Banking and Insurance offers information on licensed title agents and consumer resources.
- Check recording procedures and fee schedules with the Union County clerk or register office.
- Clarify who pays the owner’s title policy in your offer. Local practice varies and the cost can be significant.
- Build a buffer beyond your estimate. Prorations and prepaid items can shift based on your closing date.
Quick buyer checklist
- Get a mortgage preapproval and request a detailed Loan Estimate from at least two lenders.
- Price out title and settlement services where allowed. Some fees are regulated while others can vary.
- Review taxes, insurance, and HOA dues early. These drive escrow amounts and monthly payments.
- Verify wiring instructions by phone using a trusted number. Consider sending a small test wire first if time allows.
- Calendar the deadline to receive your Closing Disclosure at least three business days before closing and review it promptly.
Who pays what in New Jersey
- Realty Transfer Fee. Customarily the seller pays the New Jersey Realty Transfer Fee according to state rules. Your contract defines the final allocation.
- Attorney fees. In New Jersey, buyers commonly hire attorneys for review and closing. The buyer typically pays their own attorney directly.
- Title insurance. The lender’s policy is usually a buyer cost. The owner’s policy may be paid by buyer or seller according to the contract.
Helpful resources
- CFPB guide to mortgage forms and timelines: Owning a Home
- Closing day walkthrough and definitions: CFPB mortgage closing
- General federal housing resources: HUD.gov
- New Jersey consumer and title info: NJ Department of Banking and Insurance
- Union County clerk and recording: Union County
- Westfield tax billing and due dates: Town of Westfield
- NJ attorney review background: New Jersey Realtors
Important note
This guide is for informational purposes only and is not legal, tax, or financial advice. For personalized figures and advice, consult your lender, real estate attorney, title officer, or tax professional.
When you are ready to run the numbers for a specific Westfield property, reach out. As a local, boutique advisor, I will help you estimate cash to close, coordinate with your lender and attorney, and keep your closing on track. Connect with Alexander Goldman-Spanja to get started.
FAQs
What are buyer closing costs in Westfield, NJ?
- Closing costs are the fees and prepaid items to complete your mortgage and transfer ownership, commonly totaling about 2% to 5% of the purchase price before credits.
How do I estimate cash to close for a Westfield home?
- Add your down payment to closing costs and prepaids, then subtract any seller or lender credits, and verify amounts on your Loan Estimate and Closing Disclosure.
Who usually pays the New Jersey Realty Transfer Fee?
- The seller customarily pays the NJ Realty Transfer Fee per state rules, although the contract governs final responsibility.
Do buyers need an attorney for NJ home purchases?
- Attorney use is common due to New Jersey’s attorney review process, and buyers typically pay their own attorney directly.
How are Westfield property taxes handled at closing?
- Taxes are prorated between buyer and seller based on the period covered, and lenders often collect several months of taxes into escrow at closing.
How much will the lender collect for escrow at closing?
- Many lenders collect a few months of property taxes and insurance to start your escrow account, which varies by loan program and closing date.
What should I check on my Closing Disclosure?
- Confirm loan terms, cash to close, title and recording fees, prepaid items, and any credits, and question any new or higher fees that were not on your Loan Estimate.
