How much can I reasonably expect to pay in closing costs? [PA]


My grandmother recently passed away and her house was included as part of a trust with my mother and her sister as beneficiaries.

After talking it through with them my wife and I have decided to purchase the house. We could not afford a house like this if it were not for the fact that my parents have generously offered to gift us their 50% equity in the home.

We are still in the early stages of doing this so at this time we have not had an appraisal done or any home inspections but the house was immaculately cared for so I'm not worried about anything there.

Estimates I can find from online real estate websites say the house is worth anywhere from $343k-$387k depending on where you look. It is in a nice neighborhood with good schools. It does need some updating in some places, though.

My wife and I have been saving for a house for awhile so we have some money set aside for this. But I am trying to figure out how much will end up going towards closing costs.

My uncle (wife of my aunt who I'm buying out) is both an attorney and the executor of the estate. So I'm hoping that he can help us out to avoid as many fees and closing costs as possible. Is this practical?

I think that being very conservative with estimates, let's say the house appraised for $400k. I would be gifted the $200k in equity and then take a mortgage for the remaining $200k.

Given that I will have 50% equity/down payment immediately I feel like I will have plenty of options for mortgage brokers. My wife and I have excellent credit (both over 760) so we should get the best rates available.

The question mark is how much to budget for closing costs? There are some things I'd like to do to the house before we move in that would both add value and save time later on. But we will email on a strict budget for everything and I want to play it safe with things.

I already know I'll save on some closing costs by not using a realtor (no need for one), and probably for as much legal stuff as I can convince my uncle to do for me. But other than that I'm not sure what to plan for or budget for.

Thanks for any help.

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