Home Buying in Philadelphia>Question Details

Kandi.dobyns…, Home Buyer in

I am planning to buy my first home in the next coming months. What other cost should we expect to pay besides a down payment or inspection fee?

Asked by Kandi.dobyns90, Mon Apr 28, 2014

I live in Philadelphia but we are looking on the outskirts of the city near Ridley Park or Spring Field. We want to take out an FHA loan. We have been saving for over two years and are now in search for an agents who specialize in First-time home buying and knowledgeable in grant programs.

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EPA suggest everyone get a Radon test should be in the $150 to $250 range. Take a look at EPA map and see if you will be in Zone #1 http://www.epa.gov/radon/pdfs/zonemapcolor.pdf. Good luck, and enjoy your new home.
0 votes Thank Flag Link Mon May 26, 2014
Ask your Realtor for an Estimated Cost to Buyer sheet.
0 votes Thank Flag Link Sun May 25, 2014
Hi Kandi
Just so you are aware first and foremost on a purchase settlement fees cannot be financed in your loan. To give a dollar figure on what you would be paying is not possible until we know the approximate purchase price along with the amount your planning to put down. In regards to the types of fees here is aquick run down:

Lender Related:
Lender Underwriting/Application Fee
Appraisal Fee

Title Related:
Title Insurance (both lender and owner policies are required)
Settlement Fee

State Related:
Transfer tax (Philadelphia County its 4% and buyer and seller split and pay 2%. UNLESS it is a Fannie Mae or Feddie Mac REO. They do not pay the transfer tax so the full amount of the transfer tax is paid by the buyer. Outside of Philadelphia County the transfer tax is 2%, again split 50/50.

Escrow for taxes and insurance
Daily interest (TBD based on the closing date)

If you need more information please fee free to contact me.
0 votes Thank Flag Link Sun May 25, 2014
You're asking for two different things Kandi. FHA requires a credit score of 620 and above and you will need 3.5% down-payment. If the credit scores are 700 and above I know of a 3% down-payment conventional program. FHA has MIP-Mortgage Insurance Premium. As of this year that premium stays on the loan the entire time. Only way to remove it is to re-finance or sell the property it is attached.

Please contact us so we can properly advise you. We know Delaware county like the back of our hand.

Good Morning,

Rob Hughes-Long and Foster Real Estate Inc.
Associate Broker(AB065650)(Former Manager)

Cell# 484-410-9765 Email/Text=Faster Reply

Office 610-225-7400
0 votes Thank Flag Link Wed May 21, 2014
Actually you do not need a 620 FICO. FHA will go down as low as a 500
Flag Sun May 25, 2014
Don't forget home inspection, termite and radon inspections, and appraisal fees. All fees that will take place regardless if the home does not close.
0 votes Thank Flag Link Sun May 4, 2014
Expense of Buyer

Attorney Fees (if required)
Recording Deed
Termite Inspection
Home Inspection
Defective Drywall Inspection
Mold Inspection
Flood Insurance
Well Test/Sulfur/Sodium
Proration of Real Property Taxes
Proration of Maintenance Fees
Homeowner Insurance

Additional Expenses if Mortgage Obtained
Mortgage Title Insurance Policy
Service Fee or Origination Fee (if applicable)
Doc Stamps on Note (.35 on each $100)
Lender's Attorney Fees
Appraisal Fee
Assumption Fee on existing mortgage
Intangible Tax (.002 on New Mortgage)
Recording Mortgage
Credit Report
Escrow Account (Taxes and Mortgage)
0 votes Thank Flag Link Thu May 1, 2014
After you talk to a mortgage lender, you should get an idea of what purchase price (amount) you are pre approved for. You can ask them the specifics for any charges you don't understand (it's all so foreign when you are a first time buyer!) Also- there are ton of good free apps/websites that can help you too!

Try this one:

Janel Loughin, RealtorĀ®
Keller Williams Real Estate

Cell: 610.705.2200
Email: Janel@JanelLoughin.com
Facebook: https://www.facebook.com/janelloughinrealtor
0 votes Thank Flag Link Thu May 1, 2014
Hi Kandi,

The biggest costs you will incur are closing costs. These costs include a variety of costs, with the largest being transfer tax in Philadelphia (2% of sales price). In the suburbs (depending on where), it can be 1%. The next biggest cost will be title insurance - insurance that you must pay to show there are no liens on the property. Mortgage fees (loan origination, notary, credit report, misc), appraisal fee, 1 year of taxes, 1 year of home owner's insurance round out the larger costs that are encompassed in closing costs. With an FHA loan, you can do a seller's assist of up to 6%. Just remember, the less you put down, and the more you roll into your mortgage, the higher your monthly payments will be.

I hope this helps and good luck with your search!

Best regards,

Meghan (McIntyre) Klauder REALTORĀ®
Drexel University 2002 - BS, MS
Temple University 2009 - MBA
**Preferred REALTOR DREXEL UNIVERSITY Homeowner Program**

C. 267-975-5470
O. 267-238-5767
F. 267-386-2185

Real Estate With Heart Team - Skye Michiels & Associates
Keller Williams I Center City Office
1619 Walnut Street, 5th Floor
Philadelphia, PA 19103
0 votes Thank Flag Link Thu May 1, 2014
Homeowners insurance and taxes will be rolled into the loan, but the 1st year insurance policy will be part of the closing cost you pay.

Utility deposits if required
recording fee
title company or attorney fee
discount points and fees to the lender
0 votes Thank Flag Link Mon Apr 28, 2014
Just an FYI insurance and taxes are not allowed to be financed on a purchase. These and all other expenses with the exception of the Up Front MIP can not be financed.
Flag Sun May 25, 2014
Thank you for your reply. May I ask you what is a recording fee I am still in a midst of finding an agents so pardon my lack of knowledge.
Flag Mon Apr 28, 2014
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