Buying a home in Penn Township is exciting, but the final numbers at closing can feel like a black box. You want a clear picture of what you’ll pay, why those fees exist, and how to keep costs in check. In this guide, you’ll learn what closing costs include, the typical range for buyers, Cumberland County specifics to verify, and practical ways to estimate and reduce what you spend. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaids you pay to complete your purchase and mortgage. They are separate from your down payment. Common items include lender charges, title and recording fees, transfer taxes, inspections, and prepaids like insurance, interest, and property taxes.
Typical range
A helpful rule of thumb is to budget about 2% to 5% of the purchase price for buyer closing costs. Your number can be lower or higher based on your loan type, price point, local taxes, and which items you and the seller agree to cover. The most accurate figures will come from your Loan Estimate and, later, your Closing Disclosure.
What affects your total
- Whether you pay lender fees and discount points
- Title insurance needs and settlement fees
- State, county, and local transfer and recording taxes
- Prepaid property taxes and how taxes are prorated at closing
- Any seller credits or concessions you negotiate
- Inspections, HOA fees, or municipal requirements specific to the property
Common buyer costs in Pennsylvania
Below are costs buyers often see, with notes for Penn Township and Cumberland County. Amounts and who pays can vary by transaction, so verify with your lender, title company, and local offices.
Loan-related fees
- Origination, processing, and underwriting: Typically buyer paid and shown on your Loan Estimate.
- Discount points: Optional if you choose to lower your interest rate.
- Appraisal and credit report: Usually buyer paid for mortgage approval.
- Lender’s title insurance (mortgagee policy): Typically buyer paid to protect the lender.
Title, settlement, and recording
- Owner’s title insurance policy: In many Pennsylvania markets, sellers cover the owner’s policy, but this is negotiable and can vary locally. Confirm what is customary in Cumberland County.
- Title search and settlement fee: Paid by buyer or seller depending on local practice; request quotes from local title or settlement companies.
- Recording fees for deed and mortgage: Set by the Cumberland County Recorder of Deeds; confirm current fees before closing.
- Transfer taxes: Pennsylvania and local jurisdictions assess realty transfer taxes. Exact rates and who pays portions can vary by locality. Check with the Pennsylvania Department of Revenue and Cumberland County for current guidance and local practice in Penn Township.
Inspections and surveys
- Home inspection, radon, septic, well, pest, and structural inspections: Usually buyer paid and based on property needs.
- Survey or boundary certificate: Sometimes required by lender or requested by the buyer.
Prepaids and escrow deposits
- Homeowner’s insurance: Often the first year paid at closing.
- Prepaid mortgage interest: From settlement date to the start of your first payment cycle.
- Property taxes: Prorated at closing. If your loan includes an escrow account, you may deposit several months of taxes and insurance.
Municipal and utility items
- Municipal connection or hookup fees: Sewer or water connection or transfer fees can apply. Confirm with Penn Township or the relevant authority.
- Local certificates or permits: Some municipalities require inspections or certificates before transfer.
Attorney or notary
- Pennsylvania uses title companies or attorneys for settlement. Whether you hire separate counsel is your choice; related fees vary.
HOA-related fees
- HOA transfer fee, resale package, and prorated dues: Amounts and who pays are set by the association’s rules; check early.
Other possible items
- Recording of mortgage, wire transfer, courier, or overnight fees
- Pest or wood-destroying insect certifications if required
Local customs and timing in Cumberland County
Who handles closings
Closings often involve your lender, real estate agents, a title or settlement company (or an attorney), and county recording offices. In Pennsylvania, title companies or attorneys frequently conduct settlement. Confirm the local approach for your transaction.
Documents and timing
You should receive a Loan Estimate within three business days after you apply for a mortgage. Your lender must provide the Closing Disclosure at least three business days before closing. Review the Closing Disclosure carefully and compare it to your Loan Estimate.
Property tax proration
Property taxes are typically prorated so the seller pays through the closing date and you pay from that date forward. Get current year amounts and due dates from the Cumberland County assessment or tax office and your township tax collector so your proration is correct.
Local variances to verify
- Whether sellers customarily pay the owner’s title policy in Cumberland County
- State and local transfer tax rates and how they are split
- Any Penn Township inspection, permit, or utility requirements that affect costs
- Added costs for rural properties with septic or well systems
How to estimate your costs
Request firm, written estimates early so you can budget accurately and compare.
- Ask your lender for a Loan Estimate showing origination, points, appraisal, title charges, prepaids, and escrow deposits.
- Get title and settlement fee quotes, including title insurance premiums, from two or three local title companies or closing attorneys.
- Confirm recording fees with the Cumberland County Recorder of Deeds and verify transfer tax rates with county offices and the Pennsylvania Department of Revenue.
- Request current property tax amounts and billing cycles from the county assessment or treasurer and your township tax collector.
- If the home has an HOA, order the resale package and confirm any transfer or move-in fees.
- Call Penn Township for any required local inspections, certificates, or utility connection fees.
Ways to reduce and manage costs
- Negotiate seller concessions to cover part of your closing costs or prepaids.
- Shop lenders to compare interest rates, origination fees, and points.
- Compare at least two title or settlement providers; fee differences can add up.
- Ask whether the seller will pay the owner’s title policy if that is locally customary.
- Consider lender options that reduce upfront costs, knowing they may affect your rate.
- Time your closing date to manage prepaid interest and escrow deposits when possible.
Buyer checklist before closing
- Review your Loan Estimate and Closing Disclosure; question any surprises.
- Confirm transfer and recording taxes and who is paying which items.
- Verify who pays the owner’s title policy and that credits are written into the agreement.
- Check property tax proration against current tax bills and due dates.
- Confirm escrow cushion requirements for taxes and insurance.
- Arrange certified funds or a verified wire; always confirm wire instructions by phone with the title company to avoid fraud.
Who to contact locally
- Cumberland County Recorder of Deeds for recording fees and document requirements
- Cumberland County assessment or treasurer’s office for property tax amounts and billing cycles
- Penn Township municipal office for local inspections, permits, or utility connections
- Pennsylvania Department of Revenue for realty transfer tax guidance and forms
- Local title companies and real estate attorneys for fee schedules and customary practices
- Your lender for Loan Estimate details and final Closing Disclosure
Buying in Penn Township should feel exciting, not stressful. With the right estimates and a clear plan, you can step into closing day with confidence and no surprises. If you want a second set of eyes on your numbers or help negotiating credits, reach out. Katrina pairs practical construction know-how with calm, step-by-step guidance to keep your purchase on track.
Ready to build your plan and budget with confidence? Let’s talk about your neighborhood — schedule a free local market consult with Katrina Sells Pittsburgh.
FAQs
How much are buyer closing costs in Penn Township?
- Many buyers spend about 2% to 5% of the purchase price in closing costs, not including the down payment. Your Loan Estimate and title quotes will give you precise figures.
Which closing costs can the seller pay?
- You can negotiate seller concessions for items like buyer closing costs, prepaids, or even points. What is covered depends on your agreement and loan program limits.
Who usually pays the owner’s title insurance in Cumberland County?
- In many Pennsylvania markets the seller covers the owner’s policy, but it is negotiable and varies by area. Confirm local custom with your title company and recent nearby sales.
What is the Pennsylvania realty transfer tax and who pays it?
- Pennsylvania and local jurisdictions impose transfer taxes on real estate transactions. Rates and payment splits vary by locality. Check current guidance with the Pennsylvania Department of Revenue and Cumberland County before closing.
How are property taxes prorated at closing in Cumberland County?
- Taxes are generally prorated so the seller pays through the date of closing and you pay thereafter. Verify current year amounts and due dates with the county and township tax offices.
What documents will I receive before closing?
- You should receive a Loan Estimate within three business days after your mortgage application and a Closing Disclosure at least three business days before closing.
How can I lower my closing costs?
- Shop lenders and title companies, negotiate seller credits, consider rate-cost tradeoffs, and verify local customs on items like the owner’s title policy.
Do I need an attorney to buy in Pennsylvania?
- Many closings are handled by title companies or attorneys. Whether you hire separate counsel is your choice; ask your agent or title provider about local practice in Cumberland County.
