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You've saved up your down payment, you've got your pre-approval, and you've found a home you love. You're ready, right? Maybe not. The purchase price and down payment are just the beginning of what you'll actually spend when buying a home. There's a whole list of costs that catch first-time buyers completely off guard — and some of them are due before you even get the keys.

Here are the 10 that surprise people most, and roughly what you should budget for each.

1

Closing Costs

This is the big one. Closing costs cover loan origination fees, title insurance, attorney fees, recording fees, prepaid interest, and more. They're paid on closing day, on top of your down payment, in cash.

Typical cost: 2–5% of loan amount
2

Home Inspection

A licensed inspector goes through the entire home — roof, foundation, electrical, plumbing, HVAC, and more. This is not optional if you're being smart about this. It can also reveal issues you can negotiate repairs or price reductions on.

Typical cost: $300–$500
3

Appraisal Fee

Your lender requires an independent appraisal to confirm the home is worth what you're paying. You pay for it even though it's technically for the lender's benefit. It's usually paid upfront before closing.

Typical cost: $300–$700
4

Moving Costs

People constantly forget this one until the week before closing. Professional movers for a 2–3 bedroom home can cost $1,500–$5,000 depending on distance. Even if you rent a truck and do it yourself, costs add up fast.

Typical cost: $1,000–$5,000
5

Immediate Repairs and Updates

Even in a move-in ready home, most buyers spend money immediately after closing. New locks, a fresh coat of paint, new light fixtures, cleaning, landscaping cleanup. It adds up faster than you'd think.

Typical cost: $1,000–$5,000+
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6

Prepaid Property Taxes

At closing, lenders typically require you to prepay 2–3 months of property taxes into an escrow account. Depending on your tax rate this can be a significant chunk of cash due at closing that many buyers don't anticipate.

Typical cost: Varies widely by location
7

Homeowners Insurance — First Year Upfront

Most lenders require the first full year of homeowners insurance to be paid upfront at closing. You can't just set up monthly payments — the whole year is due on day one.

Typical cost: $1,200–$2,500/year
8

HOA Fees

If your home is in a community with a Homeowners Association, monthly fees can range from $100 to $1,000+ depending on what's included. Some HOAs also charge move-in fees or require months of dues upfront at closing.

Typical cost: $100–$600/month
9

Utility Setup and Deposits

Setting up electricity, gas, water, internet, and trash in a new home sometimes requires deposits, especially if you're a first-time customer with a utility provider. Budget a few hundred dollars for this.

Typical cost: $200–$500
10

Ongoing Maintenance Budget

This isn't a one-time cost — it's a mindset shift. As a homeowner, you're now responsible for everything. The general rule is to budget 1% of your home's value per year for maintenance. On a $350,000 home that's $3,500/year, or about $290/month set aside.

Rule of thumb: 1% of home value per year

What Should You Budget Beyond Your Down Payment?

For a $350,000 home, a realistic total for all upfront hidden costs:

$15,000–$30,000

On top of your down payment. This is why having more than just your down payment saved is so important before you buy.

💡 The Rule Most Experts Use: Have your down payment, plus 3–5% of the purchase price in additional cash reserves before you close. If you're stretching to cover just the down payment, you may not be quite ready yet — and that's okay. Better to wait 6 months than to be broke the day you move in.

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