How Much Are Closing Costs When Buying a House in Pennsylvania?

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When you are buying a home, there are a lot of costs to consider. One of the most important is closing costs. Closing costs are the fees that you pay to finalize your purchase of a home. These costs can vary depending on the state that you live in, and even the county. In this blog post, we will take a look at what you can expect to pay in Pennsylvania when buying a home. Keep in mind that these amounts are just estimates and may vary depending on your specific situation.

Closing Costs

Closing costs are fees that you pay to finalize your purchase of a home. These costs can include things like the loan origination fee, appraisal fee, title insurance, and more. The exact amount that you will pay in closing costs will depend on a variety of factors, including the price of the home, the type of loan that you get, and the state you live in.

In Pennsylvania, the average closing costs are around $2,700. This includes the loan origination fee, appraisal fee, title insurance, and other miscellaneous fees. The exact amount that you pay will depend on the factors mentioned above.

Costs that you need to know

The first thing you need to know about closing costs in Pennsylvania is that there is no set amount. These costs can vary depending on a number of factors, including the price of the home, the type of loan that you get, and the lender that you use. That being said, there are some general estimates that can give you an idea of what you can expect to pay.

The first cost that you will need to consider is the loan origination fee. This is a fee charged by the lender for processing your loan. In Pennsylvania, this fee can range from 0.5% to 1% of the total loan amount. So, on a $200,000 loan, you could expect to pay between $1,000 and $2,000 in origination fees.

Another cost that you will need to consider is the title search fee. This is a fee charged by the title company for searching public records to make sure that the property you are buying is free and clear of any liens. In Pennsylvania, this fee can range from $200 to $400.

You will also need to pay for title insurance. This is insurance that protects you in case there are any problems with the title of the property. In Pennsylvania, title insurance typically costs between $1,500 and $2,000.

Another cost that you need to be aware of is the appraisal fee. This is a fee charged by the lender to have the property appraised to make sure that it is worth the price you are paying for it. In Pennsylvania, this fee can range from $300 to $500.

So, on a $200,000 home, you could expect to pay between $4,000 and $10,000 in closing costs.

As you can see, there are a lot of costs to consider when buying a home in Pennsylvania. While these costs can vary depending on a number of factors, the estimates above should give you a good idea of what you can expect to pay. If you have any questions about these costs or need help estimating them for your specific situation, please contact a qualified real estate professional.

What is Included in Closing Costs?

As I mentioned, closing costs can include a variety of different fees. Some of the most common fees are the loan origination fee, appraisal fee, title insurance, and other miscellaneous fees.

Loan Original Fee

is the fee that the lender charges for processing your loan. This fee can vary depending on the lender, but it is typically between 1% and 2% of the loan amount.

Appraisal Fee

is the fee charged by the appraiser for their services. This fee is typically around $300.

Title insurance

is a type of insurance that protects the lender in case there are any problems with the title of the property. This fee is typically around $1,000.

Title Search

is the fee charged by the title company for searching public records to make sure that the property you are buying is free and clear of any liens. This fee is typically around $200.

Home Inspection Fee

is the fee charged by the home inspector for their services. This fee is typically around $300.

Deed Transfer Tax

When you purchase a property, you will be responsible for paying the deed transfer tax. This tax is based on the purchase price of the home and is typically 1% to 2% of the purchase price. So, on a $200,000 home, you could expect to pay between $2,000 and $4,000.

Property Survey

If you are purchasing a home that has never been surveyed, you will need to pay for a property survey. This fee is typically around $500.

Attorney Fee

You may choose to hire an attorney to represent you during the home-buying process. The fees will vary.

Recording Fee

The Recording Fee is the fee charged by the government for recording the deed to the property. This fee is typically around $100.

Mortgage Payoff and Prepayment Penalty

If you are paying off an existing mortgage on the property, you will need to pay any remaining balance plus any prepayment penalties that may be associated with the loan. The fee varies

Per Diem Interest

If you are closing on the property before the end of the month, you may be responsible for paying per diem interest. This is a daily interest charge that accrues from the date of closing until the end of the month. The fee varies depending on the amount of the loan and the number of days until the end of the month.

Additional Outstanding Fees

If there are any additional outstanding fees on the property, such as HOA dues or back taxes, these must be paid before you can close on the home.

Prorated items are not typically included in closing costs, but there are some exceptions. For example, if you are responsible for paying property taxes at the time of closing, these taxes will be prorated based on the date of the closing.

How to Reduce Closing Costs

There are a few ways that you can reduce the number of closing costs that you pay. One way is to shop around for a lender with lower fees. Another way is to ask the seller to pay some of the closing costs. This is negotiable, so it is worth asking even if the seller is not required to pay any of the closing costs. Lastly, you can try to get credit from your lender for some of the closing costs. This is typically only available if you have good credit and are able to put down a large down payment.

How to Calculate Your Closing Costs in Pennsylvania

To calculate your closing costs, you’ll need to know the purchase price of the home, the loan amount, the interest rate, and the type of loan. You can use an online closing costs calculator to estimate your costs, or you can contact a local real estate agent or lender for more specific information.

Fees vary based on loan amount and type, as well as other factors, so it’s important to compare offers from multiple lenders to get the best deal. You can use an online closing costs calculator to estimate your costs, or you can contact a local real estate agent or lender for more specific information.

Are PA Closing Costs Tax Deductible?

It’s important to know that some closing costs are tax deductible. For example, the interest you pay on your mortgage is tax deductible, as are some of the fees associated with getting a mortgage. You’ll need to consult with a tax advisor to determine which closing costs are tax deductible and how much you can deduct.

How much is the estimated closing cost in PA?

Closing costs typically amount to 5-6% of the purchase price of the home. In the end, you can’t know exactly how much your closing costs will be without talking to your mortgage advisor. Because an experienced advisor will ensure that you have the resources you need to successfully close on the home of your dreams, this is the best course of action. Get in touch with a real estate agent and mortgage advisor right away by contacting our Pennsylvania team.

Final Thoughts

Closing costs can be expensive, but it is important to be prepared for them. You can use this guide to estimate how much you will need to pay in closing costs. Remember, you can try to reduce the number of closing costs by shopping around for a lender with lower fees, asking the seller to pay some of the costs, or getting credit from your lender.

If you have any questions about closing costs, be sure to ask New Door Property Transfer. We will be able to help you understand the fees and how they are calculated.

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