How Much Money is Needed to Purchase a Lehigh Valley Home?

Lehigh Valley Closing Costs Buying Home

Buying a home in the Lehigh Valley typically involves a mortgage, a down payment plus closings costs.

Money Needed = Down Payment + Closing Costs

Down Payment

The Down Payment is dependent on the loan type (i.e. FHA requires 3.5% down, Conventional may be 5, 10 or 20% down). A VA or USDA loan may not require any down payment.

Closing Costs on a Lehigh Valley Home Purchase

There are many components associated with the closing costs to purchase a Lehigh Valley home but the largest are:

  • Title Insurance (based on the purchase price)
  • Real Estate Taxes (School, Municipal, County – based on the home and location)
  • 1% Transfer Tax (based on the purchase price)

Closing Cost Example

Purchase Price $200,000 Yearly Real Estate Taxes $3,600
Title Search/Insurance $1,595.00 Based on purchase price
Closing Protection Letter $150.00 Required by lender
Title Endorsements $400.00 Can be up to 4 @ $100.00 each
Settlement Notary Fees $45.00 7-9 notaries @ $5.00 each
Transfer Tax $2,000.00 1% of purchase price
eDocs, flood cert, and Misc $100.00 Miscellaneous Fees
1 Year Hazard Insurance $700.00 Depends on deductible, coverage…etc
1 Year Taxes $3,600.00 Municipal + County + School (changes with each property)
Inspections $400.00 Can be $500 – $800 depending on required inspections
Appraisal $450.00 Varies with each lender
Mortgage Application Fee $400.00 Varies with each lender
Total Closing Costs $9,840.00  

Money Needed for a $200,000 Home

In the above example (a $200,000 purchase), if you were doing an FHA mortgage requiring 3.5% down ($7,000) and add in the Closing Costs ($9,840) you would need a total of: $16,840