Budgeting for buying a home can be difficult enough when you're just
weighing mortgage options and a purchase price. But there are many other
factors that go into the cost of home ownership. Some of them are
one-time expenses that you'll pay during the home buying process, while
others will be recurring costs for as long as you own the home.
There are several smaller fees that add up to a rather large sum when
you're going through the closing process-loan fees, attorney fees,
underwriting fees, and more. They typically add up to 2-5% of the
purchase price. For a $300,000 home-roughly the national median-that's
in the neighborhood of $10,000, so be sure to budget for it.
Your lender will require an appraisal, and the appraisal fee (a few hundred dollars) comes out of your pocket.
The few hundred dollars you'll pay for a home inspection is money
well spent, but it's something you have to keep in mind during the
purchase process. You'll have the peace of mind of knowing the house is
free from any major issues, and you're making a smart, solid investment.
Although homeowners insurance isn't legally required, it'll almost
certainly be required by your lender. Further insurance, such as flood
insurance, may also be required (depending on your location).
Home Owners Association
If you're living in a property or community with shared spaces,
you'll almost certainly have an HOA fee. This pays for things like trash
removal, maintenance of common areas, and for recreational facilities
like gyms and swimming pools.