How Much Money is Needed to Purchase a Lehigh Valley 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