10 Hidden Costs of Buying a Home Most People Miss

The price tag on a home is just the beginning. Many first-time buyers are surprised by the additional expenses that come with purchasing a property. To help you budget wisely and avoid financial surprises, here are 10 hidden costs every buyer should know about.

1. Home Inspection Fees

Before finalizing a purchase, most buyers schedule a home inspection—and you should too. It’s typically a few hundred dollars out of pocket but can save you thousands in the long run.

2. Appraisal Fee

Lenders require an appraisal to confirm the home’s value. This is usually another $300–$500 and is paid upfront, not at closing.

3. Closing Costs

Closing costs can range from 2%–5% of your loan amount and include things like loan origination fees, title insurance, and escrow deposits. Be sure to ask your lender for a full estimate early in the process.

4. Property Taxes

Depending on your area and the home's value, property taxes can be a significant annual expense—and you may owe a prorated amount at closing.

5. Homeowners Insurance

This is required by your lender and protects your investment. Premiums vary but are often bundled into your monthly mortgage payment.

6. Private Mortgage Insurance (PMI)

If you’re putting less than 20% down, you’ll likely pay PMI. This protects the lender—not you—and adds to your monthly cost.

7. HOA Fees

If the property is part of a homeowners association, you may be on the hook for monthly or quarterly dues. These fees help cover shared amenities and maintenance.

8. Utility Setup and Deposits

Don’t forget to budget for deposits or activation fees when transferring or starting utility services at your new home.

9. Moving Expenses

Whether you DIY with a rented truck or hire professionals, moving can add hundreds or even thousands to your costs—especially for long-distance relocations.

10. Repairs and Upgrades

Most homes, even turnkey ones, need something—whether it’s new paint, window treatments, or hardware. Set aside a small budget for personalizing and updating your space.