5 Common Closing Costs Pennsylvania Home Buyers Should Save For

The process of  buying a new home can be one of the most exciting parts of your life. Unfortunately, it can also be one of the most expensive. When you close on your home loan, you will need to pay for more than just your down payment. Closing costs for Pennsylvanians usually have rates between 3% and 6% of the total home loan, which can be a serious chunk of change for many new homeowners. Read on to learn about five common closing costs you’ll almost always need to cover when you buy a home in PA.

• Appraisal fee. An appraisal is a professional estimate of how much your home is worth. Appraisals are a required part of the mortgage process, and most appraisers charge somewhere in the neighborhood of $500 for their services.
• Homeowners insurance escrow. Home insurance services in Bucks County, PA know that some mortgage companies roll insurance and property taxes into your monthly mortgage payment. If this is the case, you may be required to pay your insurance premium upfront at closing.
• Credit report fees. Your mortgage company will need to run a credit check on you before you sign your loan. You can expect to pay about $50 for a credit check at closing.
• Underwriting fees. Underwriting fees are fees paid to your lender directly in exchange for processing your loan application and preparing your loan paperwork. Underwriting fees can be as low as $200, but can also go over the $1,000 mark, depending on your mortgage company.
• Title insurance fees. Title insurance is a type of insurance that protects the policyholder against claims to their home’s title or liens. Title insurance usually costs around $1,000 to $2,000. Thankfully, unlike other types of insurance, you will only need to pay this premium once — after closing, you will stay protected for as long as you own your home.

Do you need home, flood, or motorcycle insurance in the Philadelphia area? If so, the team at the Bachmann-Zeitlin Insurance Agency can help! Give us a call today at 267-288-5193 to learn more or get started!