When it comes to purchasing a home, there’s far more to it than the down payment! Buyers also have to shell out a pretty penny for other costs associated with purchasing a home, including appraisals, credit report fees, transfer tax, and title insurance.
While these fees can quickly add up, a recent study by Bankrate.com found that Pennsylvanians actually have it the best when it comes to closing costs! According to the lenders surveyed in the state, a buyer in Pennsylvania can expect to pay just $1,837 for these fees. If that number sounds a little low, it’s because the study chose not to include variable costs like transfer tax and title insurance, which make up the lion’s share of closing costs. Instead, the lender survey looked just at things that should stay consistent, like lender and attorney fees.
So why is Pennsylvania so much cheaper? It’s largely because attorneys are rarely used in the real estate process. It’s not mandatory to consult with an attorney when purchasing or selling a home in PA, like it is in other states. Wisconsin, Kentucky, Oklahoma and South Dakota round out the top five cheapest states, while Hawaii, New York, North Carolina, Delaware and South Carolina are the priciest.