Sneaky Costs First-Time Buyers Overlook
Think the Down Payment Is the Only Cost? Think Again.
Buying your first home is an exciting milestone — but there’s one thing most first-time buyers don’t realize until they’re deep in the process: the down payment isn’t the only expense.
Before you start house hunting, it’s important to understand the true cost of buying so you can budget wisely and avoid surprises at the closing table.
Here are a few “sneaky” costs that tend to catch new buyers off guard:
Closing Costs
These typically include lender fees, title insurance, taxes, and other administrative costs — and they can add up quickly. Expect to pay 2–5% of your home’s purchase price in closing costs.
Home Inspections
Even if your new home looks perfect, inspections are essential. They uncover hidden issues like roof damage, plumbing leaks, or foundation concerns before they become costly surprises.
Appraisal Fees
Your lender will require an appraisal to confirm the property’s value. This usually costs $500–$700, depending on the size and location of the home.
HOA Fees or Transfer Fees
If you’re buying in a neighborhood with a homeowners association, be prepared for monthly dues or one-time transfer fees at closing.
Moving & Immediate Repairs
From movers to utility hookups to small cosmetic fixes, the “after you move in” expenses can easily add another few thousand dollars.
Plan Ahead and Buy Confidently
My advice? Build a cushion. Plan for about 2–5% of the purchase price in additional costs on top of your down payment.
Buying a home is stressful enough — being financially prepared means you can focus on finding the right home instead of worrying about last-minute costs.