Loan Closing Costs in Pennsylvania

Typical  closing costs associated with a new mortgage loan in Pennsylvania.

Loan Origination Fee
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount.

Title Insurance Is insurance coverage which protects the lender against defects in title.  Most Pennsylvania lenders require its purchase.  Unlike other insurances, it is purchased by a one-time premium payment and is generally part of closing costs in Pennsylvania.

Points (optional)
An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $150,000 loan, 1 point would equal $1,500. Your lender will help you select an option that is best for your situation.

Appraisal Fee
The fee for having the house appraised in Pennsylvania may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted. Generally it is paid for by credit card directly to the appraisal company. Cost is usually between 350 and 450 dollars and varies by geographic area.

Credit Report
The lender uses a credit report to determine the creditworthiness of the loan applicant. In Pennsylvania,this fee is usually paid on the settlement statement when the loan is funded.

Interium Interest  Typically in Pennsylvania, the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first monthly mortgage period begins. For example: If closing is on May 15. Your loan begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.

Escrow Account
In Pennsylvania, you may be required to fund the escrow account at closing if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account. Your loan officer will discuss this with you.