Buying Chester County PA real estate involves more out-of-pocket costs than just the down payment. There are also closing costs to pay for items such as title policies, recording fees, inspections, courier charges, and fees that a lender charges.  As a rule of thumb, closing costs to buy a home run about 2 to 4 percent of the purchase price.  Much depends on the points and origination fees a lender charges to make the loan, which are disclosed in the buyer’s Good Faith Estimate--actually a lender's "best guess" estimate of all the costs associated with obtaining a loan. (Click here to calculate your own estimate of the closing costs of your Chester County PA real estate.)

It might be harder to get a loan today, but it costs a little less to close one than it did a year ago because lenders are estimating closing costs better, according to the latest annual survey of closing costs by Bankrate.  The average cost to close on a mortgage in the United States dropped 7 percent over the past year to $3,754, according to Bankrate.com’s eighth annual closing costs survey, which was released recently.  Title insurance and other third-party fees fell 12 percent from 2011, while origination fees edged down one percent

Bankrate surveyed up to 10 lenders in all 50 states plus the District of Columbia in June of this year.  Researchers obtained online good faith estimates for a $200,000 mortgage to buy a single-family home with a 20 percent down payment. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and title insurance. The survey excludes taxes, property insurance, association fees, interest, and other prepaid items.

“This is the second year in which lenders are required to estimate third-party fees within 10 percent of the final cost. It seems like they’re getting more accurate, which helps explain the sharp decrease in these fees over the past year,” says Greg McBride, CFA, Bankrate.com’s senior financial analyst. “The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it’s important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer.”

For possible ways to lower the closing costs of your purchase of Chester County PA real estate, click here.