Philip J. Cunningham Sr
V.I.P. Realty Corporation
7942 Bustleton Ave
Closing costs vary depending on several factors; the cost of the property, taxes, type of financing, lender escrow policies and homeowners insurance. On a cash deal in Philadelphia County 19119 for a typical single family home in the $100 to $200K range the buyer will pay 2% transfer tax and title insurance (typically approx. 1% but the %age rate decreases as the value of the property increases) approximately 3% on a cash deal + prorated real estate taxes for the remainder of the year + recording and possible broker/closing fees = about 4%.
The rest of the charges are escrows (mostly consisting of 11 months of taxes & homeowners insurance), pre-paid mortgage insurance and lender fees. For a typical conventional loan expect total closing costs of about 6 to 7%. For FHA expect it to be 8 to 9%. There may be other financing alternatives available to you with different fees. How much homeowners insurance you have to pay up front and in escrow is big cost make sure your lender explains your escrows for homeowners insurance before you buy insurance. The fees associated with your loan are also be a large expense which can vary.
On FHA loans the seller may contribute up to 6% towards your closing costs. On conventional loans the seller may usually contribute up to 3% but generally up to 6% if your down payment is over 6%. Be sure to consider and ask for seller assist before submitting an offer.
There is no exact % of closing cost fees, it all depends on what your purchase price is and your transfer tax as well as escrows. whoever you are using for financing should give you a GFE ( good faith estimate ) with all your fees