How Much Are Closing Costs in PA?
If you are buying a home in Pennsylvania, you need to know what to expect to pay for closing costs to make sure you have enough cash to close on the home.
Closing costs are the fees associated with buying a home on top of the down payment, and they can vary between states, counties, and townships. The total amount of your closing costs also depends on the value of the home and the taxes that year.
In this video, Rob talks about what you can expect to pay in closing costs when you buy a home in Pennsylvania. He breaks down the total cost into categories and explains each fee.
How Much are Closing Costs in PA?
When you get preapproved for a loan, they will give you a breakdown of your estimated closing costs. If you want to get help getting a real estimate for a specific home, contact us here.
Knowing what to expect ahead of time can make it easier to prepare. Closing costs are going to be different for every home, but here’s an example.
The average sale price in Pennsylvania is between $200,000 and $300,000.
If you are buying a home in this price range, you can expect to pay an average of $10,000 in closing costs. This doesn’t include your down payment. Let’s break down this amount to see what fees make up the $10,000 estimate.
For around a $400,000 purchase, closing costs around $16,000 are typical.
Appraisal and Home Inspection
These two closing costs are paid prior to closing. Appraisal fees are usually $500 and an appraisal is required by the buyer's lender to verify the value of the home.
Home inspection can range from $400 to $700. In Pennsylvania, you often have a general home inspection, a termite inspection (Wood Destroying Insect or WDI), and a radon inspection, so the costs can depend on what inspections you do.
It is common that if a home has a well and septic tank, these items are inspected. This is because replacing a septic system can cost over $30k and replacing a well can cost over $10k.
If a home has a pool, this is often inspected as well.
Mortgage Escrow Account
Your mortgage escrow account holds 12-13 months of taxes in it that must be paid in advance. This is usually about $6,000. It also holds homeowner’s insurance and HOA fees. Home owner's insurance can range, but $1,200 a year is a good estimate if flood insurance is not required.
Transfer taxes are typically 2% of the price and the home, and often split between the buyer and seller. Each side pays 1% each. However, in certain areas, transfer taxes are higher. For example in Philadelphia, they are approximately double. But for buyers, they are usually between 1-2% of the value of your home.
Title insurance guarantees that your house can be transferred to you free and clear of any liens. Your title agent goes with you to closing and helps with the final paperwork.
In Pennsylvania, title insurance prices are fixed by the state. You can access a Title Insurance Cost Calculator here:
Or we can connect you with Vanguard Settlement Services, and they would be happy to provide you with a hard quote.
There are several fees associated with your mortgage loan. The biggest fee is your loan origination fee. This usually costs around $1,200, and you may have to pay a couple hundred more dollars for other paperwork processing fees.
If you are buying a home in Pennsylvania, the Rob Lawrence Team can help connect you with an experienced realtor in your area. We are passionate about helping out clients meet their real estate goals, and we can provide you with the information you need to purchase a house in PA.
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How much are closing costs in Pennsylvania - 2022