Homeownership hub
Look beyond the purchase price.
Prepare for the costs that come with your next move
When you're shopping for a home, it's easy to focus on one number:
The purchase price.
But buying a home involves more than the amount you agree to pay the seller.
Understanding the other costs early can help you build a more realistic budget and avoid surprises.
The Monthly Cost of Homeownership
Your monthly housing expense may include several components.
Principal & Interest
This is the portion of your mortgage payment that goes toward the loan principal and interest.
Property Taxes
Property taxes vary by location and property.
Homeowners Insurance
Homeowners insurance can help protect your property against covered losses.
HOA Fees
Some properties are part of homeowners associations and may have monthly, quarterly, or annual dues.
Other Costs
Depending on the property, you may also have costs related to:
Mortgage insurance
Flood insurance
Special assessments
Utilities
Maintenance
Upfront Costs
Your expenses don't begin with your first monthly mortgage payment.
You may also need funds for:
Down Payment
The amount you put toward the purchase upfront depends on your loan program and circumstances.
Earnest Money
Depending on the transaction, buyers may provide earnest money as part of the purchase contract.
Inspection
A professional home inspection may be recommended before completing the purchase.
Appraisal
A lender may require an appraisal as part of the mortgage process.
Closing Costs
Closing costs can include various lender, title, government, and other transaction-related expenses.
The exact costs vary depending on the transaction, loan, property, and location.
Don't Forget the Cost of Moving
Your new home isn't going to move itself.
Consider:
Movers
Truck rental
Packing supplies
Storage
Utility deposits
New furniture
Repairs
Cleaning
Locksmith services
Even small expenses can add up.
Build a Home Maintenance Fund
Owning a home means you're responsible for maintaining it.
Consider setting aside money for potential expenses such as:
HVAC servicing
Plumbing
Appliances
Landscaping
Roof maintenance
Electrical repairs
General repairs
You don't need to predict exactly when something will break.
The goal is simply to be prepared when it does.
Create Your "Real" Home Budget
Instead of asking:
"How much house can I buy?"
Instead of asking:
"How much does owning this home comfortably fit into my life?"
Create a budget that considers:
Mortgage + Taxes + Insurance + HOA + Utilities + Maintenance + Other Monthly Expenses
A Simple Homebuying Cost Checklist
Before closing
Down payment
Earnest money
Inspection
Appraisal
Closing costs
After closing
Moving expenses
Utility setup
Furniture
Repairs
Maintenance fund
Ongoing
Mortgage
Property taxes
Insurance
HOA
Utilities
Maintenance
A smarter way to shop
When comparing homes, don't compare only their listing prices.
Compare the overall cost of owning each property.
A slightly less expensive home isn't necessarily less expensive to own, and a higher-priced home isn't necessarily more expensive in every respect.
Your lender and real estate professional can help you understand the numbers relevant to your specific transaction.
Ready to start?
Find a home that fits your plans—and your budget.
