Hidden costs buyers should expect
The down payment is not the only cost. Here is a plain list of typical fees and first year expenses so you can plan with no surprises.
Closing costs you pay at the table
- Lender fees Application, underwriting, and possible discount points.
- Title and escrow Title search, closing service, and title insurance policies.
- Prepaid items Property tax and homeowner insurance escrows, per day interest from closing to first payment.
- Government fees Recording, transfer, and in some areas documentary stamp or intangible tax.
- HOA costs Move in, transfer, or capital contribution, where applicable.
Inspection and due diligence
- General home inspection A top priority to understand condition.
- Specialty inspections Roof, sewer scope, wood destroying organism, pool, or chimney as needed.
- Survey and elevation Useful for boundary clarity and flood rating in some markets.
First year ownership costs
- Utilities and deposits Electric, water, gas, trash, internet, and possible service deposits.
- Immediate repairs and safety Locks, detectors, basic tools, and any must fix items from the inspection.
- Furnishings and window coverings Plan even a simple starter budget so it does not creep.
- Maintenance set aside A small monthly amount for routine care lowers surprise risk.