Are you trying to figure out what you’ll actually pay at the closing table in Irwin or North Huntingdon? You are not alone. Closing costs can feel confusing, especially when different people mention lender fees, title charges, transfer tax, and prepaids. This guide breaks it all down so you can budget with confidence and avoid surprises. Let’s dive in.
What closing costs include
Closing costs are the one-time fees due at settlement when ownership transfers and your mortgage is finalized. They include lender charges, third-party fees like appraisal and title, government recording and transfer taxes, and prepaids such as homeowners insurance, property taxes, and daily mortgage interest.
Who pays which items can be negotiated in Pennsylvania. In many transactions the seller pays for the owner’s title insurance policy, but practices vary by deal and by local custom. Always confirm the split in your contract and with your title company.
Typical buyer costs in Irwin and North Huntingdon
Most buyers in Pennsylvania should plan for total closing costs of about 2% to 5% of the purchase price, not counting the down payment. Your number depends on loan type, whether you need mortgage insurance, the timing of your closing, and which items the seller agrees to cover.
Loan fees
- Origination or lender processing: often a flat fee or a percentage, commonly around 0.25% to 1.0% of the loan amount, or $400 to $2,000 as a flat fee.
- Underwriting, processing, document prep: typically $300 to $1,200 combined.
- Credit report: about $25 to $75.
- Appraisal: in western Pennsylvania, often $400 to $800 depending on property type and complexity.
- Small lender charges like flood certification or tax service: usually $10 to $150.
- Discount points: optional fees to buy down your interest rate. One point equals 1% of the loan amount.
Mortgage insurance and government programs
- FHA loans include an upfront mortgage insurance premium of 1.75% of the loan amount, which you can finance or pay at closing, plus an annual premium paid monthly.
- VA loans may include a funding fee that varies by service status and down payment. You can finance it or pay at closing.
- Conventional loans may require private mortgage insurance if your down payment is below 20%. Costs vary based on your profile.
Title and settlement charges
- Lender’s title insurance policy is required by the lender and is a one-time premium based on your loan amount.
- Owner’s title insurance protects your ownership. In many Pennsylvania deals the seller pays for this policy, but confirm locally. If you pay it, expect a one-time premium based on the purchase price.
- Settlement or closing fee for the attorney or title company often ranges from $300 to $1,000, with small add-ons for title exam and document prep.
Recording and transfer taxes
- Recording fees to file the deed and mortgage with the county often total $50 to $300, depending on the number of pages and the county schedule.
- Pennsylvania realty transfer taxes typically land around 1% to 2% combined in many locales, and Irwin or North Huntingdon may have their own municipal portion. Who pays is negotiable and should be spelled out in your contract. Always verify current rates with your title company or the county.
Prepaids and escrow reserves
- Prepaid interest covers daily interest from your closing date to month-end.
- Homeowners insurance: most lenders require you to pay the first year’s premium at or before closing.
- Property taxes: you usually reimburse the seller for the portion already paid for the period after closing. Your lender may also collect a cushion for your new escrow account, often about two months of taxes.
- HOA or condo dues: prorated to your closing date and any special assessments if applicable.
Inspections and other costs
- Home inspection: often $300 to $600, with add-ons like radon, pest, septic, or well testing priced separately.
- Pest inspection: about $50 to $150.
- Survey: sometimes requested, commonly $300 to $1,000+ depending on the lot.
What sellers usually pay in Westmoreland County
Sellers often cover agent commissions, prorated property taxes, and certain closing and title-related fees. Excluding commissions, seller closing costs commonly run a couple of percent of the sale price, but your total net cost including commission often exceeds 6% to 7%.
Commission and net proceeds
Commission is negotiated. Many markets reference 5% to 6% of the sale price shared between listing and buyer brokers. Your net proceeds will also reflect any agreed repairs, credits, or mortgage payoff.
Title, transfer tax, and payoffs
- Owner’s title insurance is commonly paid by the seller in many Pennsylvania transactions, but this is negotiable.
- Transfer tax responsibility is contract specific and influenced by local custom. In some areas it is split; in others the seller pays some or all. Confirm the arrangement in writing.
- Mortgage payoff, prorated taxes, HOA dues, and utilities are settled from proceeds.
Seller credits and program limits
You can offer credits toward the buyer’s closing costs or interest rate buydown. Loan program rules set limits. As a general reference, FHA commonly allows up to 6% in concessions, VA allows certain costs and commonly referenced concessions around 4% for specific items, and conventional loans have caps that depend on the buyer’s down payment, often 3% when the down payment is under 10%. The buyer’s lender should confirm the current rules.
How to estimate your cash to close
Step-by-step plan
- Request a written Loan Estimate from your lender. It outlines lender fees, appraisal, title, recording, prepaids, and estimated cash to close.
- Ask your title company for an estimated settlement statement for both buyer and seller. They will include recording fees, title premiums, and prorations.
- Confirm what the seller will pay. Note any credits and who pays transfer tax and the owner’s title policy.
- Add your down payment, remaining closing costs, prepaids, and any other out-of-pocket items.
- Build a small buffer of $500 to $1,500 for last-minute adjustments.
Illustrative example for a $300,000 home
This example is for clarity only. Replace the placeholders with your loan and title quotes and the actual local transfer tax.
- Purchase price: $300,000
- Down payment: 5% = $15,000
- Lender, appraisal, credit, processing, points: about 0.7% of price ≈ $2,100
- Title and settlement fees: about 0.3% to 0.6% ≈ $900 to $1,800
- Recording and transfer taxes: placeholder 1% = $3,000 (verify actual county and municipal rates and who pays)
- Prepaids and escrows: $1,200 to $3,500 depending on date and premiums
- Inspections: $400 to $1,000
Illustrative buyer cash to close, excluding any seller credits:
- Down payment: $15,000
- Closing fees and lender/title: $4,000 to $6,500
- Prepaids and escrows: $1,200 to $3,500
Total estimated cash to close: roughly $20,200 to $25,000, about 6.7% to 8.3% of the price. The transfer tax and who pays it can change this number significantly.
Ways to reduce your cash to close
- Negotiate seller credits for closing costs, within loan program limits.
- Ask the seller to pay the owner’s title policy if local custom allows.
- Discuss lender-paid closing cost options or a rate tradeoff with your lender.
- Explore Pennsylvania or county down payment assistance programs if you are eligible. Confirm how they affect allowable concessions.
Local Irwin and North Huntingdon tips
- Verify transfer tax and recording fees early. Westmoreland County, Irwin Borough, and North Huntingdon Township may have specific schedules and practices that change over time.
- Ask your title company for a draft settlement statement as soon as you go under contract. It will show who pays what and the current county recording numbers.
- Confirm who pays the owner’s title policy and how transfer tax will be split in your agreement of sale. Put it in writing to avoid last-minute issues.
Smart questions to ask
- To your lender: “Please send a Loan Estimate. Which fees are firm, which are estimates, and what do my prepaids and escrow setup look like at closing?”
- To your title company: “What are the current county and municipal transfer tax rates, who is paying them per our contract, and what are your estimated recording fees?”
- To your agent: “What is customary here for owner’s title policy and transfer tax, and can we negotiate seller credits to meet my cash-to-close target?”
Ready to plan your closing?
You deserve a clear, accurate budget for closing day. If you want help reviewing your Loan Estimate, title quote, and contract terms for Irwin and North Huntingdon, the Slivka / Reilley Team is here to guide you. Get local insight, fast answers, and a detailed net sheet or cash-to-close estimate tailored to your plan. Get an Instant Home Valuation or reach out to start your closing plan today.
FAQs
What are average buyer closing costs in Westmoreland County?
- Most buyers should plan for about 2% to 5% of the purchase price in closing costs, not including the down payment. Your total depends on loan type, transfer tax, and prepaids.
Who pays transfer tax in Irwin and North Huntingdon?
- It is negotiable in Pennsylvania. Some deals split the tax, others have the seller pay some or all. Confirm the arrangement in your agreement and with your title company.
What do sellers typically pay at closing in Westmoreland County?
- Sellers usually pay commission, prorated property taxes, certain title and settlement fees, and their mortgage payoff. Excluding commission, costs often total a couple of percent of the sale price.
How can a buyer lower cash to close in Westmoreland County?
- Negotiate seller credits within loan program limits, ask the seller to cover the owner’s title policy if custom allows, discuss lender-paid options, and explore assistance programs.
When do you get a Loan Estimate and what is it?
- Your lender must provide a Loan Estimate within three business days of application. It details projected costs, prepaids, and estimated cash to close so you can budget early.
