Every Cost to Consider When Buying a Home

By Sarah Stasik

August 01, 2026

A home is the biggest single investment most people will ever make. But with a purchase price in the hundreds of thousands, it's easy to overlook other home-buying costs. The list below breaks up common costs and fees into categories to help you avoid unexpected house costs and plan proactively.

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Pre-Purchase Home Buying Costs

Fees start hitting your wallet as soon as you're ready to put an offer in on a home. Here are some items to include on your home purchase financial checklist:

Earnest money: You deposit this money via your real estate agent to demonstrate good faith and that you're serious about your offer. The amount is applied toward your down payment requirement at closing. Earnest money is refundable in some cases if a deal doesn't go through, though you may forfeit it to the seller if you back out.
Home inspection fees: You typically have to pay a licensed inspector to assess the home's condition, especially if you're buying the home with a loan.
Pest/termite inspection fees: Pest inspections may be required by your lender, and you may want one to understand termite risks regardless.
Radon or mold inspection fees: These inspections are often optional add-ons.
Appraisal fees: Lenders may require you to use their appraiser to confirm that the home value supports a loan.
Survey fees: Surveys establish the legal boundaries of a property and may be needed if there are easement disputes or other issues.

Closing Costs

Once you get through underwriting and all the negotiations are done, your agent schedules the closing. The bulk of home-buying expenses, including real estate transaction fees, are realized at closing. They can include:

Down payment: If you're putting money down, you usually wire it or bring it as a cashier's check to closing, along with other closing costs.
Underwriting fees: Lenders charge fees to cover the cost of processing your loan application.
Discount points: You may be able to pay money upfront to buy down a portion of your mortgage interest rate, which can reduce your payments over time.
Title-related fees: Buyers usually cover the cost to run title searches and insure title work to protect the lender.
Attorney fees: Depending on your jurisdiction, you may need to cover attorney's fees to support a compliant closing.
Recording fees: Local city or county governments charge fees for recording your deed.
Transfer taxes: In some cases, local municipalities may charge fees related to transferring property ownership.
Prepaid interest: Depending on when during the month your closing is, you may need to pay interest upfront to cover the first partial month of the loan.
Homeowner's insurance: Many lenders require you to cover up to a year's worth of homeowners insurance up front.
Property tax: Lenders may also require you to cover a certain amount of expected property tax up front. The amount is held in escrow and paid by the mortgage company when the tax bill comes due.
Private mortgage insurance: If you don't put 20% or more down, you may need to pay for private mortgage insurance.
HOA fees: When homes are located in an area with an HOA, partial dues may be required at the time of closing.

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Move-in Costs

Once you get keys in hand, home-buying costs move to more practical matters. Cut down on unexpected house costs by planning for:

Moving expenses: Whether you're paying professionals, renting a moving truck or making multiple trips in your own pickup, moving costs can add up. Account for fuel costs, vehicle rentals and packing supplies.
Utility fees: Setting up gas, electric, water and internet can involve deposits or connection fees.
Locks and rekeying: You don't know how many copies of keys previous owners made and who they handed them out to, so it may be a good idea to install new locks or rekey doors before you move in.
Immediate repairs: Even after inspections and negotiating big repairs with sellers, most new homeowners find they need to shell out on minor issues. Consider setting aside funds for unplanned issues.
Appliances: You may need to add a washer, dryer or new fridge to your home. Even if you buy a home that includes all appliances, they may be older than you prefer.
Window treatments: Blinds, shades and curtains are rarely included in a home sale, and in a house with many windows, they can be a significant expense.

Ongoing Costs

Understanding ongoing home costs can help you plan for the future and ensure you buy a home that fits your budget.

Property taxes: Property tax is assessed annually by local governments. If you owe property tax but have a mortgage, it's typically covered by escrow payments. You won't have to pay this yourself until you pay off the mortgage.
Homeowners insurance: Lenders require you to carry insurance for the life of your mortgage, and you may want to have it afterward for peace of mind. Many lenders include homeowners insurance in escrow too.
HOA fees: If you're in a neighborhood with an HOA, remember to budget for the annual bills and other expenses related to membership.
Mortgage insurance: If you're paying PMI, it's typically rolled into your monthly mortgage payment until you've built enough equity. Once you owe less than 80% of the value of your home, you may be able to get PMI removed.
Utilities: Homeowners often pay more in utilities than renters, so make sure you have enough cushion in your budget for higher electric and other bills.
Routine maintenance: Consider setting aside up to 1-2% of your home's value each year. Such savings help you cover maintenance items like a new HVAC or roof repairs as needed.
Pest control: You may want to invest in a quarterly pest control contract, especially if you live in an area where termites or other pests are a problem.

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