How Much Are Closing Costs for Buyers in Pennsylvania?

Closing costs for buyers in Pennsylvania typically run 2% to 5% of the purchase price, on top of your down payment. On a $400,000 home, that is roughly $8,000 to $20,000 in additional cash you need ready at the settlement table. The exact number depends on your loan type, your lender, the county where the home sits, and the terms you negotiate with the seller.

The good news is that most of these costs are known before you sign anything. Pennsylvania buyers receive a Loan Estimate early in the process, and your settlement agent provides a final breakdown, so there should be no surprises. The key is knowing which line items belong to you and which ones the seller customarily handles.

If you are also selling a property, compare this guide with our breakdown of closing costs for sellers in Philadelphia so you can plan both sides of the equation.

Most buyer closing costs fall into one of three buckets: lender fees, title and settlement fees, and prepaid or prorated items. Here are the line items you will see most often on a Pennsylvania buyer closing statement.

• ✓ Loan origination and lender fees: Points, underwriting, processing, and application fees charged by your mortgage lender, typically 0.5% to 1.5% of the loan amount.
• ✓ Appraisal fee: The lender requires an independent appraisal of the property, usually $400 to $800 in the Philadelphia area.
• ✓ Title search and title insurance: The title search verifies ownership and liens, and a lender's title policy protects the mortgage. The lender's policy is nearly always a buyer cost.
• ✓ Settlement or attorney fees: Pennsylvania is an attorney state, so most transactions involve a settlement agent or real estate attorney.
• ✓ Recording fees and transfer tax share: Recording the deed and mortgage costs a few hundred dollars, and Pennsylvania's realty transfer tax is customarily split 50/50 between buyer and seller.
• ✓ Prorated property taxes and HOA dues: You reimburse the seller for taxes and association dues already paid that cover days after your closing date.
• ✓ Prepaid items: Your first year of homeowners insurance and prepaid mortgage interest from closing day to your first payment date.
• ✓ Home inspection: Usually paid directly to the inspection company before closing, often $350 to $700 depending on the size of the home.

Custom and practice set most expectations, even though many line items are negotiable. Here is how buyer and seller costs usually divide in a typical Pennsylvania transaction.

In competitive Philadelphia neighborhoods, buyers sometimes ask sellers for closing cost help in the form of a concession. That request is negotiable, and its size usually depends on how many offers the seller is weighing. Our first-time buyer resources walk through how to structure these requests without weakening your offer.

A little preparation makes Pennsylvania closings predictable. Follow these steps to keep your final numbers close to what you expected.

Read the Loan Estimate Line by Line

Within three business days of applying, your lender must send a Loan Estimate itemizing your closing costs. Compare it against your final Closing Disclosure, which arrives at least three business days before closing. Any significant increase should come with an explanation.

Confirm Who Pays the Transfer Tax

Pennsylvania's transfer tax is usually split, but some counties and some negotiations change that split. Verify the total rate for your county, because a change here can shift thousands of dollars.

Shop Title and Settlement Services

Title insurance premiums are largely regulated in Pennsylvania, but settlement and attorney fees are not. Getting two or three quotes can save several hundred dollars.

Plan for Prepaids

First-year homeowners insurance plus prepaid interest can add a full monthly payment's worth of cash to your closing total, so include them in your savings target.

Getting pre-approved before you shop gives you the clearest picture of your total closing budget. Start with our pre-approval guide, then use the steps above to lock in a closing with no surprises.