Closing day should feel exciting, not confusing. If you are buying in Dormont or nearby South Hills neighborhoods, the mix of transfer taxes, title fees, and lender charges can raise a lot of questions. You want to know what you will owe, who pays what, and when the final number becomes official. This guide breaks down typical Pennsylvania buyer closing costs, local South Hills norms, and simple examples so you can budget with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaids you pay at settlement in addition to your down payment. They cover the services that make your loan, title transfer, and property ownership official. While every transaction is unique, most buyers in Pennsylvania see similar categories.
- Loan-related fees: application, underwriting, credit report, appraisal, and recording of your mortgage.
- Title and settlement: title search, settlement services, lender’s title insurance policy, and optionally an owner’s policy.
- Prepaids and escrows: prepaid interest, a portion of property taxes and insurance collected for your escrow account, and the first year of homeowners insurance.
- Inspections and surveys: home inspection, radon testing where applicable, pest inspection, and surveys if needed.
- Government and recording: deed and mortgage recording fees and a share of transfer taxes if negotiated that way.
A simple rule of thumb: if you are financing, you typically budget about 2% to 5% of the purchase price for buyer closing costs, not including your down payment. Your actual number depends on your loan type, price point, timing, and any seller credits you negotiate.
South Hills and Dormont norms
Pennsylvania charges a state realty transfer tax commonly cited as 1% of the sale price. Local counties and municipalities may add their own portions. The combined rate varies by location. In the Pittsburgh area, including Dormont in Allegheny County, it is common for buyers and sellers to negotiate how to split the total transfer tax, often around a 50/50 split. Your agreement controls who pays what, so confirm the split in your offer and with your title company.
Local practice matters. Attorneys often participate in Pennsylvania residential closings, and lenders typically require a lender’s title insurance policy. Owner’s title insurance is optional, but many buyers choose it to protect their equity. Your title company will provide a clear quote and review your title commitment, including any exceptions to coverage.
What buyers usually pay
Loan and lender fees
If you use a mortgage, expect lender charges for origination or underwriting. Many lenders quote these as a flat fee or a percentage of the loan amount, often 0.25% to 1.0%. You will also see smaller items like your credit report, typically about 25 to 50 dollars. The appraisal often ranges from 400 to 800 dollars depending on property type.
Title and settlement costs
You will pay for a lender’s title insurance policy, which protects the lender. This premium varies by price and insurer and is a one-time cost paid at closing. An owner’s title insurance policy is optional but strongly recommended. Owner’s policies are commonly about 0.5% to 1.0% of the purchase price as a one-time premium, though rates depend on filed schedules in Pennsylvania. You will also see settlement or closing fees, document prep, and notary or courier charges.
Prepaids and escrows
Your lender collects prepaids to set up your escrow account. Expect 1 to 3 months of property taxes and 1 to 3 months of insurance, plus prepaid interest from the day you close to the end of that month. You also pay your first year of homeowners insurance up front, which may range from 600 to 2,000 dollars depending on coverage and home.
Inspections and surveys
Most South Hills buyers order a general home inspection, often 300 to 600 dollars. Radon testing can add 100 to 200 dollars. You may also choose specialized inspections such as a sewer scope or pest inspection based on the home’s age and condition. Surveys are not always required, but if ordered, they can range from 300 to 1,200 dollars.
Government and recording
Allegheny County charges recording fees for the deed and mortgage. These are usually in the tens to low hundreds of dollars. Transfer taxes apply statewide plus any local shares. The split between buyer and seller is negotiable and should be written into your contract.
Miscellaneous fees
If the property is part of a condo or HOA, there may be document or transfer fees. Plan for small items like wire fees or overnight delivery.
How much to budget in Dormont
A practical starting point is 2% to 5% of the purchase price for buyer closing costs if you are financing. Here are simple examples to show how the numbers can stack up. Your lender and title company will give you exact figures once you are under contract.
Example A: Dormont home at 200,000 dollars
- Buyer estimate at 2% to 4%: about 4,000 to 8,000 dollars
- Appraisal: about 500 dollars
- Lender fees and points: about 1,000 to 2,000 dollars
- Title and lender’s title insurance: about 500 to 1,200 dollars
- Escrows for taxes and insurance: about 1,000 to 2,000 dollars
- Inspection and tests: about 350 to 700 dollars
- Recording and incidentals: about 150 to 400 dollars
If the combined transfer tax is around 2% in a given locality, that totals about 4,000 dollars on a 200,000 dollar sale. If your contract splits transfer tax 50/50, your share would be about 2,000 dollars. Your title company will confirm the exact local components and contract split.
Example B: Larger South Hills home at 350,000 dollars
- Buyer estimate at 2% to 4%: about 7,000 to 14,000 dollars
Remember, these are illustrations. Your Closing Disclosure will show the precise amount due at closing.
Timing from contract to keys
Loan Estimate and early disclosures
After you apply for your mortgage, your lender issues a Loan Estimate that outlines projected closing costs and terms. Review it and ask questions early. You can compare Loan Estimates from more than one lender before you lock in.
Inspections and appraisal
Most inspection periods run about 7 to 14 days after you go under contract. Your lender will order the appraisal once underwriting starts. Scheduling can vary, so book inspections quickly to keep your closing timeline on track.
Closing Disclosure timing
By federal rule, buyers who finance must receive the Closing Disclosure at least 3 business days before closing. This document shows your final closing costs, prepaid items, and exact cash to close. Read it carefully and ask your lender and title company to explain any changes from your Loan Estimate.
Funds to bring and safe transfer
You will bring a cashier’s check or arrange a bank wire for your cash to close. Confirm acceptable payment methods with the title company, and always verify wire instructions by phone using a known number before sending any funds. This extra step protects you from wire fraud.
Tips to lower or manage costs
- Compare lenders. Shop Loan Estimates and ask about the structure of origination or underwriting fees.
- Ask about credits. You can negotiate seller concessions or a transfer tax split. Your offer strategy can align credits with any inspection repairs or rate buy-downs.
- Time your closing. A closing later in the month reduces prepaid interest but consider your move-out and utility timing too.
- Consider owner’s title insurance. It is optional, but many buyers choose it for peace of mind on their largest asset. You can ask your title company about available premium options.
- Review your escrow setup. Ask how many months of taxes and insurance your lender will collect and how that affects cash to close.
Quick Dormont buyer checklist
- Estimate closing costs at 2% to 5% of price, plus down payment.
- Request a Loan Estimate early and compare at least two quotes.
- Schedule inspections quickly and consider a radon test for older homes.
- Review the title commitment and ask about any exceptions.
- Confirm who pays transfer tax in your contract and note the split on your Closing Disclosure.
- Plan for the first year of insurance and escrow deposits.
- Verify wire instructions with your title company before sending funds.
Selling in South Hills: what to expect
If you are also selling a home, expect your largest cost to be the real estate commission. In many U.S. markets, total commissions are often about 5% to 6% of the sale price, split between the listing and buyer brokerages. Pennsylvania transfer taxes apply to the sale, and the split between buyer and seller is negotiable in our market. For reference, on a 200,000 dollar sale, a combined transfer tax of about 2% would total 4,000 dollars if that is the prevailing combined rate. The contract controls how much each side pays.
Sellers also pay off any existing mortgage, prorate property taxes and HOA dues through the day of closing, and cover their side of settlement or attorney fees. You will receive a settlement statement showing net proceeds after payoffs, commissions, taxes, and fees. Proceeds are typically disbursed at or shortly after closing once documents record.
Local guidance you can trust
Every Dormont and South Hills transaction has moving parts. Transfer tax splits are negotiated, title premiums follow filed schedules, and escrow collections depend on your lender and timing. A clear plan saves you money and stress. If you want local, step-by-step help from offer to keys, connect with a South Hills agent who manages the details and negotiates credits that fit your goals.
Ready to plan your purchase or sale in Dormont or across the South Hills? Reach out to Wendy Weaver for personalized guidance, clear numbers, and a smooth path to closing.
FAQs
How much are typical buyer closing costs in Pennsylvania?
- Buyers using a mortgage usually budget about 2% to 5% of the purchase price for closing costs, excluding the down payment; actual numbers depend on loan type, price, and any seller credits.
Who pays transfer tax in Dormont and Allegheny County?
- Pennsylvania has a 1% state transfer tax plus local portions, and the split between buyer and seller is negotiable in our market, often around a 50/50 split noted in MLS remarks.
Is owner’s title insurance required for buyers?
- Lenders require a lender’s policy, but an owner’s title policy is optional; many buyers choose it for added protection of their equity since it is a one-time premium.
When will I know my exact cash to close?
- If you are financing, you will receive a Closing Disclosure at least 3 business days before settlement that shows your final costs, credits, and exact funds to bring.
What inspections should I expect in the South Hills?
- Most buyers order a general home inspection and often a radon test; depending on the home, you may add a sewer scope, pest inspection, or other specialized checks.
What prepaid items and escrows will my lender collect?
- Expect 1 to 3 months of property taxes and 1 to 3 months of insurance for your escrow account, prepaid interest from closing to month-end, and the first year of homeowners insurance paid up front.
