Buying in Delaware County and wondering how much cash you need to bring to the table? You’re not alone. Closing costs can feel like a black box when you’re focused on finding the right home and neighborhood fit. This guide breaks down what buyers typically pay in Delco, what’s negotiable, and how to plan your budget with confidence. Let’s dive in.
What closing costs cover
Closing costs are the fees, taxes, and prepaid items you pay to finalize a home purchase. They are separate from your down payment. For buyers, this usually includes lender fees, appraisal and inspections, title and settlement charges, recording fees, prepaid interest, homeowners insurance, and initial escrow deposits.
You will get an exact, final number on your Closing Disclosure, which your lender must deliver at least three business days before settlement. Use that document as your definitive guide. Until then, build your budget with solid estimates and plan for a small cushion in case things change close to closing.
Typical buyer costs in Delaware County
Actual costs vary by property, loan type, and vendor. Use the ranges below as planning figures, then confirm with your lender and title company.
Lender and loan-related fees
- Loan application and credit report: Often $0 to $75 for the credit pull. Some lenders waive or credit application fees.
- Origination and underwriting: Commonly 0.5% to 1% of the loan amount or a flat fee. You can sometimes negotiate or ask for lender credits.
- Appraisal: Typically $300 to $700, higher for complex properties. This is usually a fixed third-party fee.
- Prepaid interest: Covers interest from closing to month-end. The amount depends on your closing date and loan size.
- Private mortgage insurance (if applicable): For low-down-payment loans, PMI is often paid monthly and typically equals 0.3% to 1.0% of the loan amount per year. Some programs allow an upfront option.
Inspections and optional reports
- Home inspection: Commonly $300 to $600 for a general inspection.
- Specialty inspections: Radon, pest, sewer, or HVAC can add $100 to $400 each. Prices vary by provider.
- Survey or boundary certification (if required): Often $300 to $1,000 depending on the property.
Title, settlement, and attorney
- Title search and closing fees: Often $300 to $800 for search and settlement work.
- Title insurance: You will see two policies. The lender’s policy is generally required and typically paid by the buyer. An owner’s policy is optional but recommended to protect your equity. Premiums scale with price and can be several hundred to several thousand dollars.
- Attorney or settlement agent fee: Commonly $300 to $1,500 depending on complexity and whether you hire a separate attorney.
Government, taxes, and recording
- Recording fees: County-set fees to record the deed and mortgage. Expect tens to a few hundred dollars per document. These amounts are fixed by the county schedule.
- Real estate transfer tax: Pennsylvania charges a state-level realty transfer tax, and municipalities may add local transfer taxes. The total rate and who pays vary by municipality and by negotiation. The amount is set by law, but the buyer-seller split is negotiable and often follows local custom.
- Prorated property taxes and municipal charges: At settlement, you will reimburse the seller for taxes or fees that cover the period after closing. Amounts depend on billing cycles and the closing date.
Insurance and escrow reserves
- Homeowners insurance: Most lenders require proof you paid the first-year premium by closing. The amount varies by property and coverage.
- Initial escrow deposits: Many loans require a starting reserve, often around two months of taxes and two months of insurance, but your lender will set the exact figure.
HOA and miscellaneous
- HOA or condo transfer fees: Some associations charge transfer, move-in, capital contribution, or resale certificate fees. These often range from $100 to $500 or more.
- Admin fees: Wire, courier, or tax certification fees are usually $20 to $100 each.
Delaware County and Pennsylvania specifics
A few local practices can affect your bottom line. Plan ahead and verify early.
Transfer tax and local custom
Pennsylvania has a state-level transfer tax, and individual Delaware County municipalities may add local transfer taxes. Total rates and buyer-seller splits vary by town or borough and are negotiable. Do not assume a single percentage across the county. Ask your agent and title company for the exact rate and typical allocation for the specific municipality where you’re purchasing.
Recording fees and deed requirements
Recording fees are set by the county and can change. Your settlement agent will calculate the exact fees based on the documents being recorded. Some municipalities require occupancy certificates or sewer compliance before closing, which may involve inspections or fees. Confirm requirements with the township or borough well before your settlement date.
Title and closing norms in PA
It is common in Pennsylvania for attorneys to be involved at closing, and title companies coordinate the settlement. As a buyer, you can select the title company or attorney. Whether the buyer or seller pays for an owner’s title policy depends on local custom and your negotiation.
Property tax proration
Delaware County taxes may be billed annually or semiannually, and school district taxes are a separate line item. These are prorated at settlement based on your closing date. Your title company will calculate the precise credits and debits on your settlement statement.
How to estimate your cash to close
Use these steps to build a reliable estimate long before you receive your Closing Disclosure.
- Ask your lender for a Loan Estimate. This lists projected lender fees, prepaid interest, and estimated escrow deposits.
- Request a preliminary settlement estimate from a local title company or your attorney. This should include title premiums, settlement fees, recording charges, transfer taxes, and expected prorations.
- Add inspection, appraisal, and any HOA or survey costs you anticipate.
- Subtract your earnest money deposit, since it will be credited at closing.
As an early planning rule, many buyers set aside roughly 2% to 5% of the purchase price for closing costs, excluding the down payment. Your actual number depends on your loan type, property price, municipality, and your negotiated credits.
What’s negotiable and how to ask
You have more leverage on closing costs than you might think. Consider these options and discuss them with your agent.
- Ask the seller to cover specific items, such as a portion of the transfer tax, some or all of the owner’s title policy, or HOA transfer fees.
- Request a general seller concession toward buyer closing costs. This credit can offset multiple line items on your side of the settlement statement.
- Use lender credits. Some lenders can offer a credit to reduce your upfront costs in exchange for a slightly higher interest rate.
- Shop providers. Compare quotes from at least two lenders and two title or settlement firms. You can also compare insurance and inspector pricing.
When writing your offer, be precise about the amount or the items you want covered and align the request with current market conditions.
Timing, wiring, and pre-closing checklist
A little preparation goes a long way, especially in the week before settlement.
- Leave a cushion. Keep a small reserve for last-minute adjustments, such as updated tax or HOA balances.
- Verify wire instructions. Call your title company using a known, trusted phone number. Wire-fraud scams are real. Never rely on email-only instructions.
- Track your three-day review. Read your Closing Disclosure as soon as it arrives, and ask questions right away.
Use this quick checklist to stay organized:
- Gather your Loan Estimate, purchase agreement, proof of earnest money, and any HOA documents.
- Ask your lender to explain escrow setup, prepaid interest, and PMI options.
- Ask your title company or attorney for a written estimate of title premiums, settlement fees, recording charges, and transfer taxes.
- Ask your agent about local transfer-tax customs and whether sellers in your target area often pay specific fees.
- Check your township or borough site for any required certificates or inspections so you can plan timing and costs.
Bottom line for Delaware County buyers
Closing costs are a mix of fixed charges and items you can influence. Many fees are set by lenders, insurers, or the county, but you can negotiate who pays certain costs and use credits to lower your cash at closing. The smartest move is to line up estimates early, compare providers, and review your Closing Disclosure carefully during the three-day window.
If you want a clear, property-specific estimate and help negotiating credits, reach out to the Carney Team. We’ll walk you through the numbers, explain local customs by municipality, and help you close with confidence.
FAQs
Who pays the transfer tax in Delaware County?
- It depends on the municipality’s rate and your negotiation. The tax itself is set by law, but buyer-seller allocation follows local custom and can be negotiated in the purchase agreement.
Do buyers have to purchase owner’s title insurance?
- An owner’s policy is optional but recommended. In Delaware County, who pays for it varies by local custom and negotiation. Confirm the expected payer with your title company and agent.
Can I roll my closing costs into the mortgage?
- Some loan programs allow lender credits or financing certain costs, which may increase your rate or loan amount. Eligibility depends on loan type and your down payment.
When will I know my exact cash to close?
- Your lender must provide a Closing Disclosure at least three business days before settlement that lists the precise amount due and all line items.
How can I avoid last-minute surprises at closing?
- Get a Loan Estimate and a preliminary settlement worksheet early, then review both with your agent or attorney. Verify wire instructions by phone and keep a small cash cushion for adjustments.
