Buying a Home in Greater Philadelphia in 2026: The Real Costs Nobody Tells You About
If you are thinking about buying a home in Greater Philadelphia or Montgomery County in 2026, you are probably seeing confusing numbers everywhere. One article says you need six figures saved, another says you can buy with almost nothing down, and friends are telling you stories that do not match what you are seeing online.
I am Shaina McAndrews, a Realtor and Team Leader with eXp Realty, serving Montgomery County, Philadelphia, and the surrounding areas. I am known for educating clients, protecting them in negotiations, and guiding them through every step with a clear process so there are fewer surprises and less stress.
This is the guide I wish every buyer had before they start.
The Big Picture: How Much Do You Really Need?
Let us start with the question everyone asks: “How much money do I actually need to buy a house here.” In 2026, most Greater Philadelphia buyers need enough cash to cover a down payment, closing costs, inspections, and a cushion for moving and early repairs.
Local examples show that many first time buyers in the city and close-in suburbs are buying homes in the 250,000 to 400,000 range, often with 3 to 5 percent down and typical closing costs of about 3 to 5 percent of the purchase price. Depending on your price point and loan type, that often means a total cash need in the broad range of roughly 15,000 to 35,000 dollars for many buyers in our region, sometimes less with assistance and sometimes more in higher price ranges.
Those are not exact numbers for you, but they give a realistic starting point that we can refine once we know your goals, income, and target areas.
Down Payment: It Is Not Always 20 Percent
One of the biggest myths I hear is that you must have 20 percent down. That is simply not true.
Common options many of my buyers use include:
Conventional loans with 3 to 5 percent down.
FHA loans with 3.5 percent down.
Higher down payments (10 to 20 percent) for buyers who want to keep monthly payments and mortgage insurance lower.
On a 350,000 home, that can mean anywhere from about 10,500 to 70,000 dollars in down payment alone depending on loan type and your comfort level. The “right” number is not just what your lender says you can do; it is what lets you sleep at night and still have some savings after closing.
Closing Costs: The Line Item Nobody Talks About Enough
Closing costs are the fees and expenses required to finalize your loan and transfer ownership, and they often surprise buyers. In our region, they typically include:
Lender fees and points if applicable.
Title insurance and title company fees.
Transfer tax, which is significant in Philadelphia and still meaningful in the suburbs.
Prepaid taxes and homeowners insurance.
In Greater Philadelphia, closing costs commonly land in the 3 to 5 percent range of the purchase price, depending on loan size, tax rates, and how the deal is structured. On a 350,000 home, that can easily mean another 10,000 to 17,500 dollars on top of your down payment.
The earlier you understand this, the better we can plan. Sometimes we can negotiate a seller credit to offset part of these costs, but in a competitive segment that is not always realistic.
Inspections and Appraisals: Protection, Not “Extra” Costs
Inspections and the appraisal are often treated like annoying extras, but they are actually core parts of protecting you in a market where buyers are cautious and sellers still expect strong offers.
You should expect to pay for:
General home inspection.
Termite inspection if needed.
Radon and sewer line inspections in certain areas or for certain property types.
These can add up to roughly 500 to 1,500 dollars or more depending on the size, age, and type of home. The appraisal, ordered by your lender to confirm value, is another several hundred dollars.
These costs are frustrating to pay on a home you may not end up buying, but skipping them can create far more expensive surprises later. My job is to help you decide which inspections are essential based on the property and your risk tolerance.
Taxes, Insurance, and the True Monthly Payment
In 2026, many Greater Philadelphia buyers are more payment conscious than ever because homeownership is significantly more expensive than renting on a monthly basis in many scenarios.
Your true monthly payment typically includes:
Principal and interest on your mortgage.
Property taxes, which vary by county and municipality.
Homeowners insurance and possibly mortgage insurance.
Current projections suggest average 30 year fixed rates hovering in the mid 6 percent range this year and steady but moderate price growth, which means payments are material and deserve careful planning.
When we talk, I care less about “how much can you qualify for” and more about “what payment lets you live your life, save, and still feel stable.”
Moving, Set Up, and Maintenance: The Hidden Line Items
Beyond the big, obvious costs are the quieter ones that can sneak up on you:
Moving expenses, whether you rent a truck, hire movers, or a mix.
Initial furniture, window coverings, and basic home items you did not need as a renter.
Immediate repairs and maintenance in the first year, even on a well maintained home.
Many new homeowners spend several thousand dollars in the first 90 days on small projects, adjustments, and things like lawn equipment or basic tools. It is not glamorous, but it is real, and building that into your plan keeps you from feeling blindsided.
Common Money Surprises Buyers Face
Some of the most common surprises I see buyers run into include:
Underestimating closing costs or not realizing they are separate from the down payment.
Being surprised by property tax and insurance escrows in their monthly payment.
Forgetting about moving and “first 90 days” expenses.
Not planning for inspection findings that may lead to repairs or negotiated credits.
The more we talk about these up front, the fewer “I did not know that” moments you will have later. My job is not just to unlock doors; it is to help you see the full financial picture before you say yes.
How I Help You Plan and Avoid Bad Decisions
When we work together, I treat your budget with the same care I would want someone to treat mine. That means:
Connecting you with lenders who will walk you through numbers clearly, not just give you a maximum approval.
Running scenarios together so you can see how different price points and down payments affect your monthly payment and cash needed at closing.
Structuring offers that balance competitiveness with financial protection, especially around inspections and appraisal.
I am not interested in pushing you to the top of your approval just to “win” a house. I want you to feel comfortable and proud of your decision six months and six years from now.
Want to Talk Through Your Numbers in Real Life?
If you are wondering how all of this applies to you and your situation, you do not have to guess. We can go through real numbers, based on your goals and price range, in a calm, private conversation.
You can book a full buyer consultation here:
https://calendly.com/agentshainamc/buyerconsult
If you prefer something shorter and more informal to start, you can schedule a quick call here:
https://calendly.com/agentshainamc/quick-call
The more clearly you understand the real costs, the more confident and prepared you will feel when you finally find the home you love.
