What Other Costs Should I Expect Besides the Down Payment?

If you’re planning to buy a home, you’ve probably heard a lot about saving for a down payment. But what about the other costs that come with buying a home? Let’s break down what you should be prepared for so there are no surprises along the way.

1. Closing Costs
These typically range from 2% to 5% of the home’s purchase price. They include things like lender fees, title insurance, appraisals, and recording fees. Some buyers negotiate for the seller to cover part of these costs, but it’s not guaranteed—especially in a competitive market.

2. Home Inspections & Appraisals
While optional, a home inspection is strongly recommended and can cost between $300–$500. An appraisal (usually required by the lender) costs about the same. These fees are paid upfront.

3. Escrow & Prepaids
Most lenders will require you to prepay a portion of your property taxes and homeowner’s insurance into an escrow account. That can be another few thousand dollars at closing, depending on your home and location.

4. Moving & Utility Setup
Don’t forget about the costs to move—whether that’s hiring professionals or renting a truck. And you may have setup fees for things like electric, gas, internet, and trash service.

5. Repairs, Maintenance & Furniture
Even if your new home is move-in ready, you’ll probably want to make it your own. That might mean a few tools, some paint, or new furniture. Budgeting for these extras can help you settle in comfortably.

Final Thought:
Buying a home is a big investment, and it’s more than just the down payment. Knowing what to expect helps you plan smarter and avoid stress. If you ever want to talk through the numbers or run a scenario, I can help.