The True Cost of Buying a Home

When you buy a home, the down payment gets most of the attention. But it’s only one piece of the puzzle. To avoid surprises, you need to plan for the full cost of buying.

Here are the main expenses to prepare for:

1. Closing Costs

   Expect 2 to 5 percent of the purchase price. This covers lender fees, title insurance, attorney fees, and recording costs.

2. Home Inspection and Appraisal

   A home inspection runs $300 to $600. An appraisal usually costs $400 to $700. Both are essential for protecting your investment.

3. Moving Expenses

   Professional movers, rental trucks, or storage fees add up quickly. Budget at least $1,000 for a local move, more for long-distance.

4. Initial Repairs and Upgrades

   Even move-in ready homes often need updates like paint, locks, blinds, or landscaping. Plan for at least a few thousand dollars.

5. Property Taxes and Home Insurance

   These are ongoing costs you’ll pay every year. They are often added to your monthly mortgage payment.

6. HOA Fees

   If the home is in a community with a homeowners association, fees can range from $50 to several hundred per month.

7. Utilities and Maintenance

   Larger homes often mean higher utility bills. Regular maintenance averages 1 to 2 percent of the home’s value annually.

Buying a home is one of the biggest financial steps you’ll take. By planning for more than just the down payment, you’ll protect your budget and avoid stress after closing.