The acquisition costs associated with a home purchase are an unfortunate consequence, but necessary. Steps can be taken by you to mitigate these expenses. For example, search for properties that offer a tax abatement; seek mortgage programs that offer you reduced fees and lower interest rates; in this buyer's market, a seller assist certainly is not an unreasonable request; etc. The bottom line: enlist the services of a buyer's agent to be your advocate & guide to getting the best terms possible.

In most of PA the transfer tax is a total of 2%, with 1% paid by buyer and seller. In Philadelphia the total transfer tax is 4%, 2% paid by each buyer and seller. Take that 2% and add on title insurance, lender fees, escrows, and misc fees and it certainly could reach upwards of 5%. If you do not have much money to put down, make sure you have a strong buyers agent working for you and try to get the seller to "assist" you with some closing costs. You agent (and/or lender) should give you a fairly accurate estimate of closing costs before you go to look at your first home.

A great way to find out how much it will cost you to move to Philadelphia is to contact a PA mortgage company and ask them to give you a good faith estimate on a property that you like. They need the property so they can calculate the taxes into the mix. If you are working with a realtor in PA they should be able to help you with your costs to close as well.