Costs Associated with Home Buying
First time home buyers might not be aware of additional costs associated with the closing process, so here is a
list of costs you should be prepared for:
- Your down payment. If your down payment is less than 20%, you will also more than likely have to
pay for private mortgage insurance.
- Moving expenses. The cost will depend on how far you are moving and how much you have to
- A home inspection. Your lender will require you to order and pay for this.
- Property taxes. You’ll have to pay them annually.
- Homeowner’s insurance and title insurance.
- Maintenance costs. If you were a renter, your landlord paid for maintenance, but now the
responsibility is yours.
- A home warranty. This is insurance you can get that covers repairs and replacement due to normal
wear and tear.
- Utility bills. Monthly charges for gas, water, electricity, telephone, cable, and internet.
By considering these expenses and budgeting for them, you are less likely to be caught off guard.