Everybody looking to purchase a Pittsburgh house wonders what the average closing costs will be. It is only natural to wonder, especially considering how expensive the closing costs can truly be if you are not careful. In truth, the costs are not much given the amount of money the home typically sells for, but they can cause problems because they usually must be paid now and in cash. Essentially, they add to the down payment amount and can cause cash flow problems for buyers.
As you might imagine, closing is not easy to quote. Closings in one state involve different things and costs compared to another. Closing costs related to things such as points and property taxes are dependent on the deal and geographic location. Some states, for instance, do not collect property taxes, which means no deposit against them must be collected at closing. All and all, you should take the following figures with a grain of salt, but at least you will have a guideline.
Protecting Future Assets
To protect their investment in you, most lenders roll most closing costs into the payment plan for the loan. For instance, the lender will require you to pay a deposit in to one of their accounts to cover future property taxes and such. If you are lucky, some creative lenders will roll these costs into the in the loan given to you.
As of 2003, meaning the numbers have risen quite a bit over the past couple years, the average total closing costs for a $180,000 mortgage amounted to between $2,000 and $10,000. This figure is an admittedly vague calculation of costs ranging from appraisals to fees and taxes. Do not go into a real estate transaction assuming these figures will apply to your specific situation. Get a very clear written statement of all costs, so you know exactly what is coming and the amount of cash you are going to need on hand to cover them. Depending on the why you are selling Pittsburgh house, going with a company that pays them could help alot.
In Conclusion on Closing Costs When Purchasing A Pittsburgh House
If you are buying a Pittsburgh house, there is one way to attack closing costs. You can aim for a no point, no fee home loan. Assuming you can find a lender, many of the expenses attributable to a buyer are going to disappear. Of course, you have to get the loan!
The fact that you are wondering about the closing costs when purchasing a Pittsburgh house is a good sign. It means you are thinking through the process properly and mature enough to do it. Get the exact terms from your lender and an escrow company. It often costs 1000’s of dollars and is one of the main reasons many Pittsburgh homeowners are selling homes to we buy houses Pittsburgh type companies like Cash For Homes Pittsburgh. They pay all closing costs and fees allowing sellers to save a ton of money. Many sellers searching, “sell my house fast Pittsburgh” end up utilizing them because they are largest cash investor in western Pennsylvania!