Buying a home in Jenkintown and wondering how much cash you’ll need on closing day? You’re not alone. Closing costs can feel confusing, especially with Pennsylvania’s transfer taxes and local customs. In this guide, you’ll learn what fees to expect, how they’re typically split in our area, and a simple way to estimate your cash to close. Let’s dive in.
What closing costs include
Closing costs are the non-down-payment funds you bring to settlement. They cover lender fees, title and settlement charges, transfer taxes, inspections, appraisal, prepaids, and escrow deposits.
As a rule of thumb, buyers in Montgomery County often budget 2% to 5% of the purchase price for closing costs, not including the down payment. Your total can vary based on loan type, negotiated credits, and local transfer taxes. Your lender will provide a Loan Estimate early and a Closing Disclosure at least three business days before closing that shows your final cash to close.
Transfer taxes in Pennsylvania
How the tax works
Pennsylvania charges a state realty transfer tax. Counties and municipalities may add their own transfer tax on top. The total combined rate is applied to the purchase price at closing.
For example, if a transfer tax is 1% on a $400,000 sale, the total tax would be $4,000. The exact percentages depend on the state, county, and borough components for the property address.
Who usually pays in Jenkintown
In many Pennsylvania transactions, the transfer tax is commonly split 50-50 between buyer and seller. This is a custom, not a law, and it can be negotiated in your agreement of sale. Your actual share depends on the total rate and your contract terms.
Verify local rates
Since local rates can change, confirm the current totals for Jenkintown and Montgomery County before you finalize numbers. You can verify with the Pennsylvania Department of Revenue, the Montgomery County Recorder of Deeds or Treasurer, and Jenkintown Borough. Your title company can also confirm the customary split on recent 19046 settlements.
Title and settlement fees
Title search and title insurance
A title search checks for liens, easements, and other issues. Lenders typically require a lender’s title insurance policy, which buyers usually pay. An owner’s title insurance policy protects your ownership. In many Pennsylvania deals, the seller often pays for the owner’s policy, but this varies by locality and negotiation. Ask your agent and title company what is customary for Jenkintown.
Premiums are based on price and follow rate schedules, so they can range from several hundred to a few thousand dollars for typical suburban homes.
Settlement, recording, and attorney fees
- Settlement or closing fee: Charged by the title or closing agent for facilitating settlement and disbursing funds.
- Recording fees: The county charges to record the deed and mortgage. Buyers usually pay the mortgage recording fee. Who pays the deed recording fee varies by local custom and contract.
- Attorney fees: Many Pennsylvania buyers hire their own attorney for contract review or closing. Fees vary by provider and complexity.
- Small admin items: Courier, wire, and overnight fees may appear and are usually modest.
Prepaids, escrows, and prorations
Insurance and prepaid interest
- First-year homeowner’s insurance: Lenders generally require proof of coverage and the first-year premium or a prepaid amount at closing.
- Prepaid interest: You will pay per-diem interest from your funding date to the end of that month.
Escrow deposits for taxes and insurance
Lenders often collect an initial escrow deposit to fund tax and insurance accounts. This can be 2 to 6 months of property taxes and insurance, plus any required cushion. It is a meaningful part of your cash to close.
Property tax prorations
Property taxes are prorated at closing so the seller pays through the closing date and you pay after. In our area, taxes are billed by the school district and municipality, so the proration depends on the billing cycle and whether taxes are current.
Inspections, appraisal, and HOA items
- Home inspection: Often $300 to $600 for a typical single-family home.
- Specialized inspections: Radon, termite, sewer scope, or other tests usually range $100 to $500 each.
- Appraisal: Usually required by the lender and often $300 to $700, paid by the buyer.
- HOA or condo costs: If applicable, expect possible transfer fees, document fees, and prorated dues.
How to estimate cash to close
Here is a simple formula you can use:
Cash to close = Down payment + Buyer closing costs − Seller credits − Earnest money already paid
Closing costs include lender fees, title and settlement charges, transfer taxes, prepaid interest, first-year insurance, and initial escrow deposits.
Hypothetical example
- Purchase price: $400,000
- Down payment: 5% = $20,000
- Estimated buyer closing costs: 3% = $12,000
- Initial escrow deposit for taxes and insurance: $3,000
- Earnest money already deposited: $5,000
Hypothetical cash to close: $20,000 + $12,000 + $3,000 − $5,000 = $30,000
Note: Transfer tax allocation and who pays the owner’s title policy will affect your final number. Always confirm your specific totals with your lender and title company.
Local steps to verify your numbers
- Confirm the current transfer tax rate and expected split for Montgomery County and Jenkintown Borough.
- Compare your lender’s Loan Estimate to your final Closing Disclosure, delivered at least three business days before settlement.
- Ask your title company for an estimated settlement statement for your property type and price point.
- Clarify acceptable funds for closing, such as certified check or wire. Always call a known number to verify wire instructions.
- Bring required ID and any documents your lender requests.
Work with a local guide
When you understand the moving parts, you can plan your cash with confidence. Our team helps you estimate closing costs early, negotiate smartly, and coordinate with your lender and title company so there are no surprises. If you are a medical professional, ask about our MD Solutions guidance for physician loan pathways and timing around new contracts.
Ready to get clear on your closing costs and next steps in Jenkintown? Reach out to Sean Ryan for a friendly, local conversation.
FAQs
What are typical buyer closing costs in Jenkintown?
- Many buyers budget 2% to 5% of the purchase price for closing costs, excluding the down payment, with totals affected by transfer taxes, escrow deposits, and loan type.
How are Pennsylvania transfer taxes split between buyer and seller?
- A 50-50 split is common in many Pennsylvania transactions, but it is a custom that can be negotiated in the agreement of sale.
Who pays for title insurance in Montgomery County, PA?
- Buyers typically pay for the lender’s policy, while the owner’s policy is often paid by the seller in many Pennsylvania markets, though this varies by locality and negotiation.
When will I know my exact cash to close as a buyer?
- Your lender must deliver a Closing Disclosure at least three business days before settlement that lists your final cash to close line by line.
What prepaid and escrow costs should a Jenkintown buyer expect?
- Expect the first-year homeowner’s insurance, prepaid interest to month-end, and initial escrow deposits for taxes and insurance that can equal several months of payments.
Can I ask the seller to help with my closing costs in Jenkintown?
- Yes, you can request seller credits to offset closing costs, subject to loan program limits and the terms you negotiate in the contract.
How do property tax prorations work in Montgomery County closings?
- The seller typically pays taxes through the closing date and the buyer pays after, based on local billing cycles and whether taxes are current.
Do Pennsylvania buyers need an attorney at closing?
- An attorney is not required by law, but many buyers hire one for review or representation, and fees vary by attorney and transaction complexity.
