Pittsburgh Pennsylvania Home Buyer FAQs...
How Much Money Do I Really Need For Closing Costs?
Closing costs are simple the fees, costs and taxes associated with purchasing a home, borrowing the money and the preparation of necessary paperwork to finalize the sale. The total amount of your closing cost will vary depending on where your new home will be located, what type or property you are buying, the price of the home and the complexity of the transaction. It is extremely important that you work closely with your Realtor® and lender in the early stages of the home buying process to determine what these costs could be, since closing costs can easily represent thousands of dollars.
There Are Several Different Categories of Home Buying Expenses:
- Pre-Closing Expenses: (Paid prior to the closing on your home)
- $50-$150 - Credit Report Fee (Non Refundable). Paid to your lender at the time of loan application to run a credit report.
- $200-$400 - Home Inspection Fee. Optional but highly recommended. Pays for a professional inspection of the home you are purchasing. Usually paid within 15 days of the signing of a sale agreement on a home.
- 1% of the sales price towards; Handmoney/Good Faith Money. This money is held (deposited into an escrow account) by the real estate broker and then returned and used toward your closing costs at the closing.
- Closing Costs: (Paid at Closing)
- $1,500-$2,000 - Lender Closing Fees. It is possible to have the seller pay for these on your behalf. These are upfront fees charged by your mortgage lender, title company and other service providers.
- Pre-Paid Items - These are costs you are required to pay at the time of settlement. (i.e. accured interest, mortgage insurance premiums, taxes and hazard insurance escrows.)
- Reserves - Most conventional loan programs require buyers to have at least two months PITI in savings after the down payment and closing costs are paid. Government loans such as FHA and VA loans do not typically require reserves.
- Down Payment:
- 0%-20% of the purchase price of the home, depending on the type of loan you have chosen. There are many zero money down options available to home buyers. The greater the down payment - the lower the monthly payment.
It is critical that you have a clear understanding of the total costs of your new home purchase. Your Realtor® and/or your lender should supply you with a detailed estimate of these costs, well in advance of your actual closing.
Don't hesitate to contact me when it comes time to move forward with purchasing your new home. As stated through out this website, myself and my home selling team strive ourselves to helping you get the most home for your money! So when you're ready, be sure to take advantage of my offerings, such as my 100% Risk Free Services... this is just another way we lay it all out on the line to make sure you have a happy and successful home buying experience!