Buying a home in Pittsburgh is exciting, but the final number you wire on closing day can feel like a mystery. You want to plan with confidence and avoid last‑minute surprises. In this guide, you will learn what buyer closing costs include, how much to budget, how seller credits can help, and what is unique to Allegheny County and the Pittsburgh area. Let’s dive in.
Closing costs at a glance
Most Pittsburgh buyers should plan for total closing costs of about 2% to 5% of the purchase price, not including your down payment. Your exact number depends on your loan type, lender pricing, title and recording fees, insurance, and the timing of your closing date. To firm up your estimate, request a written Loan Estimate from your lender and a draft closing statement from your title company.
What your closing costs include
Here are the most common items you will see on your Closing Disclosure. Amounts are typical ranges and can vary by lender and property.
- Lender fees. This can include origination, processing, underwriting, application, and a credit report. Combined lender fees often range from 0.5% to 1.5% of the loan amount or a flat $400 to $2,000 total. Credit reports are usually under $100.
- Appraisal and inspections. Appraisals commonly run $300 to $700. Home inspections usually range from $300 to $800 or more depending on scope, like sewer, pest, or radon.
- Title and settlement. Expect charges for the title search, lender’s title insurance, settlement or closing fee, notary, and document prep. These items often total $500 to $2,000 or more. An owner’s title insurance policy is a separate one‑time premium based on the purchase price.
- Recording and county fees. Recording the deed and mortgage typically costs in the low hundreds, often $50 to $300 depending on document count.
- Realty transfer tax. Pennsylvania collects a state realty transfer tax, and many local municipalities add a local tax. In many PA localities, the combined rate is commonly around 2% of the sale price. Who pays is negotiable and guided by local custom. Your title company will confirm the exact rate and allocation for your property.
- Prepaids and escrows. These are not fees, but cash you pay at closing for items like prepaid interest, your first year of homeowners insurance, and initial escrow deposits for taxes and insurance. This can be hundreds to several thousand dollars based on timing and annual amounts.
- Mortgage insurance or government fees. FHA loans include an upfront mortgage insurance premium that is typically 1.75% of the loan amount. VA loans often include a funding fee that varies by down payment and prior use. Conventional loans may require private mortgage insurance if you put less than 20% down.
- Other possible items. A survey, if required, can run $300 to $1,000. Condo or HOA transfer fees can be $100 to $400 or more. In most transactions, the seller pays the real estate commission, not the buyer.
Pittsburgh and Allegheny specifics
Understanding a few local practices will help you budget accurately.
- Realty transfer tax. The combined state and local realty transfer tax in many Pennsylvania municipalities is commonly around 2% of the sale price. How that tax is split between buyer and seller is negotiable and guided by local custom. Ask your title company how it will be handled for your transaction.
- Owner’s title policy. In parts of Pennsylvania, sellers often pay for the owner’s title policy by local custom. This can reduce your cash to close, but practices vary. Confirm with your title company before you write an offer.
- Recording fees. Recording charges in Allegheny County are usually in the low hundreds and depend on the number of documents.
- Property tax prorations and escrows. Taxes are prorated based on your closing date, and your lender will collect initial escrow deposits for future tax and insurance bills. Check the Allegheny County tax schedule for the property you are buying so your lender can estimate escrows accurately.
- Condo and HOA paperwork. If you are buying in a condo or HOA, request association documents early. Transfer or estoppel fees may apply and can affect timing.
How seller credits work
Seller‑paid closing costs, also called seller assist or seller concessions, can reduce your out‑of‑pocket cash. The type and amount allowed depend on your loan program.
- Conventional loans. Caps are tiered based on your down payment. Common caps are 3%, 6%, or 9% of the purchase price depending on how much you put down. Exact tiers can change, so verify with your lender.
- FHA loans. Typically allow up to 6% of the purchase price toward your closing costs and prepaids.
- VA loans. Seller concessions are allowed. A common cap for certain concession types is up to 4%, and VA rules specify what counts as a concession. Confirm details with your VA lender.
- USDA loans. Seller concessions are also allowed, often up to 6%. Confirm program specifics with your lender.
What seller credits can cover:
- Allowed. Many programs allow seller credits to pay closing costs, prepaid interest, initial escrow deposits, and even discount points.
- Not allowed. Seller credits cannot fund your down payment. Certain lender fees may have restrictions based on program rules.
Be sure your offer clearly states any requested seller credit, and confirm with your lender that the amount fits your program limits. The credit must appear on your Closing Disclosure.
Sample cash‑to‑close math
These examples are for illustration only. Your actual numbers will depend on your loan, the property, transfer tax treatment, title fees, insurance premiums, and negotiated credits.
Example 1: $300,000 purchase with 20% down, conventional
- Purchase price: $300,000
- Down payment (20%): $60,000
- Closing costs (2.5% assumed): $7,500
- Prepaids and escrow deposits: $2,900
- Earnest money applied: $3,000
Estimated cash to close:
- Down payment: $60,000
- Closing costs: $7,500
- Prepaids/escrows: $2,900
- Earnest money: -$3,000
- = Total: $67,400
Example 2: $300,000 purchase using FHA with 3.5% down
- Purchase price: $300,000
- Down payment (3.5%): $10,500
- Closing costs (3%): $9,000
- FHA upfront MIP: 1.75% of the loan amount. This can be financed into the loan or paid at closing.
- Prepaids and escrows: $2,900
- Earnest money: $3,000
Two scenarios:
- If you finance the upfront MIP into the loan: $10,500 + $9,000 + $2,900 - $3,000 = $19,400 estimated cash to close.
- If you pay the upfront MIP at closing: add about $5,066 to cash to close for a total near $24,466.
Example 3: $500,000 purchase with 10% down and seller credit
- Purchase price: $500,000
- Down payment (10%): $50,000
- Closing costs (3%): $15,000
- Seller credit applied: $15,000
- Prepaids and escrows: $5,000
- Earnest money: $5,000
Estimated cash to close:
- Buyer total before credit: $50,000 + $15,000 + $5,000 - $5,000 = $65,000
- Seller credit: -$15,000
- Total: $50,000
How to budget your cash to close
Use this simple plan to avoid surprises and keep your move on track.
- Get pre‑approved early. Ask your lender for a Loan Estimate that shows all projected closing costs, prepaids, and your total cash to close.
- Confirm local items with the title company. Ask for a draft closing statement and verify the realty transfer tax rate and who is paying which portion, recording fees, and title policy charges.
- Discuss seller credits with your agent. If you need help with closing costs, decide on a specific credit amount that fits your loan program and include it in your offer.
- Prepare funds for early costs. Set aside money for your earnest deposit, appraisal, and inspections that often happen soon after your offer is accepted.
- Time your closing date. The day of the month can affect prepaid interest and escrow deposits. Your lender can model the differences for you.
Your next step
If you want a clear, personalized number for your Pittsburgh home purchase, the fastest path is to combine a lender’s Loan Estimate with a title company’s draft statement for your exact property and municipality. From there, you can adjust your offer strategy with or without seller credits and close with confidence.
Ready to get your numbers and a smart plan for closing costs? Connect with Nate Nieland to map out your financing, request the right estimates, and craft an offer that fits your budget.
FAQs
How much are buyer closing costs in Pittsburgh?
- Most buyers should plan for about 2% to 5% of the purchase price, not including your down payment. Ask your lender for a Loan Estimate to confirm your number.
What does the Pennsylvania realty transfer tax mean for me?
- In many localities the combined state and local transfer tax is commonly around 2% of the sale price, and the split between buyer and seller is negotiable. Your title company will confirm how it applies to your deal.
Can the seller pay some of my closing costs?
- Yes. Seller credits are common, but each loan program has limits. Conventional, FHA, VA, and USDA loans allow different caps, so verify with your lender before you write your offer.
Do I have to buy title insurance as a buyer?
- Your lender will require a lender’s title policy, which buyers typically pay. An owner’s title policy is separate and often paid by the seller in parts of Pennsylvania, but confirm local custom.
What are prepaids and escrow deposits at closing?
- Prepaids include things like your first year of homeowners insurance and interest from closing to month‑end. Escrow deposits fund future tax and insurance bills that the lender pays on your behalf.
How can I lower my cash to close?
- Negotiate a seller credit, compare lender fees, consider whether to finance program fees like FHA upfront MIP, and time your closing date to manage prepaids and escrow needs.
