5 Home Buying Costs You May Not Be Expecting

Buying a home may be one of the biggest purchases you will ever make, so you’ve probably done your homework.

You went to the bank to see what kind of loan you qualified for, you searched for homes within your budget, and you’ve been saving money. You found the right house, put in an offer, and the sellers accepted it.

With that said, when the time comes to pull the trigger and actually purchase your new home, it’s possible that you didn’t plan for these home buying costs.

The Costs of Buying a Home: Plan for These 5 Expenses

You want to plan your finances carefully when taking out a mortgage and making a down payment on your new house. Don’t forget to take these home buying expenses into account, too.

1. Home Inspection

A home inspection is de rigueur to make sure your new home has no major problems brewing under the surface (think structural and foundational). Don’t forget about this important step, because it could end up saving you a lot of money if inspectors find any problems that weren’t already mentioned in the listing.

2. HOA (Homeowner’s Association) Fees

Some subdivisions and residential areas require all homeowners to contribute a monthly fee for upkeep of common areas. So, if your new home has HOA fees, make sure you know what they are and what they’re for, and set aside some of your budget for paying for the first month.

3. Moving Fees

Once you get the house, you’ve still got to move there. Plan for rental moving trucks, moving companies, boxes, and other moving expenses.

4. Fees for Moving Utilities, Transferring Services, or Canceling Accounts

Most, if not all, utility companies will charge a fee for transferring your service to your new address. These services can include internet, cable, electricity, heat, water, and gas. If you’re moving out of the city or out of state, these companies might charge you a fee for stopping service and canceling your accounts.

5. New Appliances and Miscellaneous Household Items

If your new home doesn’t include major appliances, like a washer and dryer, refrigerator, or stove, then you’ll have to pony up for those purchases. Alongside that cost, moving to a new place requires some adjustments that might cost you extra money.

For instance, if the kitchen table you own doesn’t fit into your new breakfast nook, you’ll have to buy a smaller one. Similarly, if you move from a home that’s carpeted throughout to one with all wood floors, your vacuum is going to be useless. You’ll probably need rugs, brooms, and maybe even a hard-surface floor cleaner.

Plan for Home Buying Costs to Avoid Surprises (and Stress)

The costs of buying a home can really add up. If you plan wisely, budget your funds, and expect the hidden costs, you should be able to get through the experience with your bank account intact.