Closing Costs - Normal for PA?
After 2 years of "getting ready", my wife and I have finally made an offer on our first deal!
I recently attended a BP Meetup Group where a group of ~20 great people analyzed the deal, and many of the seasoned pros felt the closing costs were way too high. However, since these investors were not active in Pennsylvania (where this investment is located), they suggested reaching out to the forums for help.
I am purchasing the property for $60k in Carlisle, PA, with conventional 20% down, 30-year financing with 0 points.
The 3 closing cost estimates we received are:
- Realtor: $3,874
- Local Community Bank: $3,839
- National Lender: $5,090
For investors active in the Carlisle/Harrisburg area, is this what you are used to seeing? Why do the title-related fees vary so greatly? If these fees are high, any advice for getting a better deal?
Thank you all for your help!
| Expense | Realtor Est. | Local Bank Est. | National Chain Est. |
| Loan Origination Fee | $ 900 | $ - | $ 990 |
| Application Fee | $ - | $ 270 | $ - |
| Document Preparation Fee | $ 250 | $ 265 | $ - |
| Underwriting Fee | $ - | $ 265 | $ - |
| Appraisal Fee | $ 460 | $ 550 | $ 550 |
| Appraisal Management Fee | $ - | $ - | $ 90 |
| Credit Report Fee | $ 40 | $ 63 | $ 22 |
| Tax Service Fee | $ 95 | $ 110 | $ 75 |
| Recording Fee (Deed + Mortgage) | $ 170 | $ 240 | $ - |
| Notary Fee | $ 30 | $ 20 | $ - |
| Sub-total of Fees Above | $ 1,945 | $ 1,783 | $ 1,727 |
| Title Insurance/Endorsements | $ 924 | $ - | $ - |
| Title Closing Protection Letter Fee | $ - | $ 125 | $ - |
| Title Electronic Document Delivery Fee | $ - | $ 49 | $ - |
| Title Endorsement Fee | $ - | $ 300 | $ 452 |
| Title Lenders Coverage Premium | $ - | $ 699 | $ 680 |
| Title Overnight Delivery Fee | $ - | $ 21 | $ - |
| Title-Tax Certification Fee | $ - | $ 50 | $ - |
| Title Owners Coverage Premium | $ - | $ 50 | $ 774 |
| Title Settlement/Closing Fee | $ - | $ - | $ 850 |
| Sub-total of Title Fees Above | $ 924 | $ 1,294 | $ 2,757 |
| Property Inspection | $ 325 | $ 325 | $ - |
| Pest /Termite Inspection | $ 55 | $ 150 | $ - |
| Flood Certification | $ 25 | $ 12 | $ 7 |
| Sub-total of Inspection Fees Above | $ 405 | $ 162 | $ 7 |
| State Transfer Tax (half share) | $ 600 | $ 600 | $ 600 |
| Total Closing Costs | $ 3,874 | $ 3,839 | $ 5,090 |