Top 28+ Hidden Costs Of Buying A Home Many Don’t Think About

#1 Property Tax

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

Beyond your monthly mortgage payment, owning a home in the US means you'll also be paying property taxes. It's really important to find out exactly how much this tax will be before you sign any final papers, because it can change a lot based on where your house is and how much it (and any land) is worth. Some lenders just add this tax to your monthly mortgage bill, but in other places, you might pay it all at once for the whole year, either upfront or after the fact.

#3 Cost Of Replacement

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

Beyond the initial purchase price, a big part of homeownership is understanding that major components of your house won't last forever, and replacing them can be a significant, often overlooked, expense. Things like your roof, heating and air conditioning system, water heater, and even windows and plumbing fixtures all have a limited lifespan. Essentially, with each passing year, these items are getting closer to needing a costly replacement, so savvy homeowners factor in these future "hidden" repair and replacement bills into their long-term budge

#5 Lawn

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

If your new home comes with a lawn, you'll need to figure out how to care for it. Deciding to mow it yourself is a good start, but then you have to think about buying and storing the necessary equipment, like a mower and other tools, especially if your house doesn't already have a shed. Even if you're fortunate enough to inherit some equipment, remember that those machines need regular maintenance, which adds to the ongoing costs of keeping your yard looking good.

#7 Homeowners Association Fees

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

If you buy a home, especially a condo, that has shared amenities like a pool, garden, or gym, you'll likely have to pay homeowners association (HOA) dues. These fees, usually paid monthly, go towards maintaining these common areas, covering things like pest control, snow removal, or gardening. HOA fees can hover around $250 but they can sometimes be as high as $1,000 or more. Also, be aware that you might face a one-time HOA transfer fee to cover administrative tasks when you buy the place.

#9 Underwriting And Processing Fees

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

When you get a mortgage, lenders often charge underwriting and processing fees, which are sometimes called mortgage origination fees. These are basically administrative charges that cover the lender's costs for preparing, handling, and finalizing your loan paperwork. The exact amount can change depending on who your lender is and the type of loan you're getting, but you can generally expect these fees to fall somewhere between $400 and $900.

#11 Down Payments

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

One of the biggest chunks of cash you'll need when buying a house is the down payment. If you put down less than 20%, lenders will usually make you pay for something called mortgage insurance, or PMI, which protects them if you can't make payments. The actual amount you need for a down payment can change a lot depending on where you're buying and how big the house is. In the US, Bankrate.com says the lowest you might go is 3%, but only if your credit score is decent (at least 580). Of course, putting down more money if you can is a good idea because it often means you'll get a better interest rate on your loan.

#13 Transfer Tax

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

When you buy a home, there's a good chance you'll encounter a real estate transfer tax, which might also be called deed tax, mortgage registry tax, or stamp tax. This tax, common in most states, covers the government's costs for officially recording the change of ownership. Whether the buyer or the seller pays this tax can depend on where the home is, local customs, and even the current real estate market conditions. You can often find online transfer tax calculators for your specific state or local area to see if you'll need to pay and how much it might be.

#15 Moving Costs

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

Remember that actually getting all your stuff to your new house will cost money. You could rent a truck and do all the heavy lifting yourself, which is usually the cheaper option but can be very tiring if you have a lot to move. Alternatively, you can hire professional movers; their fees will depend on how much you're moving and how far you're going but this is usually in the thousands of dollars.

#17 Deck, Patio, Or Pool

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

If your new home includes features like a deck, patio, or pool, remember to factor in their ongoing upkeep. Even a well-maintained wooden deck will require regular maintenance to stay in good condition, and patios also need attention to keep them looking their best. As for pools, whether you're installing one or buying a home that already has one, be prepared for the various expenses involved in opening, closing, and generally maintaining your personal oasis.

#19 Broker Services

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

Many homebuyers choose to work with a mortgage broker to help them find the best loan deals from across the entire market, which can simplify the often complex process of securing funds. If you decide to use a broker's services, be prepared for a fee, which is typically between 1% and 2% of the total loan amount you're approved for. It's important to remember to include this expense in your overall home-buying budget.

#21 New Furnishings

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

One of the exciting parts of owning a new home is furnishing it, but this can also be a significant expense, especially if it's your first place. You'll likely need to budget for essential big-ticket items like a couch, refrigerator, and definitely a bed to sleep on right away. If money is tight, you can often find budget-friendly furniture through local neighborhood recycling sites and apps to get you started until you can afford to upgrade.

#23 Security System

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

Ensuring you feel secure in your new home is a priority, and this might involve costs related to a security system. If the house already has a hardwired system, you'll likely have a monthly monitoring fee if you decide to activate it. Alternatively, you might opt for a system like Ring, which offers different pricing plans. Even if you had security cameras before, a larger home might mean you need to buy additional equipment to cover all the rooms.

#25 Maintenance And Repairs

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

After moving in, you'll likely have a list of maintenance tasks or repairs, especially if you conducted thorough inspections beforehand. Whether it's fixing known issues or making cosmetic updates you've planned, it's wise to budget for these projects so you can begin them soon. You can choose to tackle some jobs yourself, or if you prefer professional help, keep in mind that handymen charge by the hour!

#27 Mail Redirection

#1 Property Tax, #3 Cost Of Replacement, #7 Homeowners Association Fees, #9 Underwriting And Processing Fees, #11 Down Payments, #13 Transfer Tax, #15 Moving Costs, #17 Deck, Patio, Or Pool, #19 Broker Services, #21 New Furnishings, #23 Security System, #25 Maintenance And Repairs, #27 Mail Redirection

To ensure you don't miss any important mail after you move, consider setting up a mail redirection service for the first few months, even if you've updated your address with everyone. The U.S. Postal Service (USPS) offers this service, allowing them to forward your mail to your new home or hold it at your local post office for a while. It's a relatively inexpensive way to get peace of mind, costing only a few dollars.

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