13 Extra Costs to Keep in Mind Before Buying a Home

Whether you’re purchasing your first home or upgrading to something larger, it’s essential to consider more than just the purchase price when calculating your budget. Additional costs—like taxes, fees, and other expenses—can catch you off guard and turn closing day into a stressful experience if you’re not prepared.

Some of these costs are one-time payments, while others may involve ongoing commitments. Not all will apply to every situation, but being aware of them ahead of time can help you budget more effectively and avoid surprises.

Buying a home is an exciting milestone, but with so many details to manage, unexpected expenses are the last thing you need. Use this checklist to ensure you’re fully prepared for your next move.

13 Costs to Be Aware Of Before Buying a Home

    1.    Appraisal Fee

Your lender may require an appraisal of the property, which is typically your responsibility. Appraisal fees usually range from $175 to $300.

    2.    Property Taxes

Depending on your down payment, your lender might include property taxes in your monthly mortgage payments. If not, you may need to provide annual proof of payment.

    3.    Survey Fee

For resale homes, your lender may request an updated property survey, which can cost between $700 and $1,000.

    4.    Property Insurance

You’ll need home insurance to cover the replacement value of your home and its contents. Your lender will require proof of insurance to protect their investment.

    5.    Service Charges

New utility setups, like cable or phone services, often involve installation fees.

    6.    Legal Fees

Even straightforward home purchases require legal oversight. Lawyer fees vary widely, so it’s worth shopping around for competitive rates.

    7.    Mortgage Loan Insurance

If your down payment is less than 20%, you may need mortgage loan insurance. The cost ranges from 0.5% to 3.5% of the mortgage amount and is often added to your monthly payments.

    8.    Mortgage Broker Fees

Some mortgage brokers charge fees to find and arrange financing. However, many offer their services for free, with the lender covering the cost.

    9.    Moving Costs

Professional movers typically charge $50–$100 per hour for a truck and a small team. Costs may increase during peak seasons.

    10.    Maintenance Fees

If you’re buying a condo, expect monthly fees for maintenance of common areas like hallways and landscaping. Fees vary based on the property.

    11.    Water Quality Certification

If your home uses a well, consider testing the water for quality and quantity. Depending on your location, there may be a fee for certification.

    12.    Local Improvement Taxes

If your town has added improvements like sidewalks or sewers, these costs may be reflected in higher property taxes.

    13.    Land Transfer Tax

This tax applies whenever property changes ownership. The amount varies depending on the purchase price and location.

By understanding these potential costs and factoring them into your budget, you’ll be better equipped to handle the financial side of buying a home. Planning ahead helps make the process smoother and less stressful, so you can focus on enjoying your new space!