Bleeding Money with These Hidden Home Buying Expenses

It’s exciting, buying a home. But because of how much you’re looking forward to being a new homeowner, you might blindsided to all the additional costs that come with it. When you’ve already crunched the numbers and reviewed your mortgage rates and interests, studied the down payments and budgeted for it, you almost don’t want to think about all the other costs that come with owning your own house.


This is however a reality that you have to take into consideration. These additional costs can creep up to you without you even knowing it.

These are the niggling little details behind owning a home. There’s application processing, document preparation, filing costs, notary fees, appraisal requirements, the latter possibly leading to more costs such as damages caused by infestation or molding or anything similar. Then there are cases where real estate lawyers may be involved, which means you need to tack on costs to cover lawyer fees as well.

Title and deed registration will also require additional costs. And these are usually charged by number of pages.

These are costs that you don’t necessarily notice, but you can’t avoid either since closing is one of the most important parts of a sale. You can negotiate these with your seller, but generally ranges from two to five percent of your overall cost.

Title insurance may also be required, especially when a home doesn’t have a clean title. However, unlike typical insurance policies, this only requires a one time payment.

Origination costs, discount points, credit report fees and even court courier fees can accumulate to a very significant amount. Additional costs also include tax service fees to ensure your taxes were recorded properly to avoid future property complications and a flood certification fee.

Homeowners insurance is also a requirement with most lending institutions requiring it prior to loan collateral. Usually, this factors into the amount of escrow you have to put up. Mortgage insurance is also a consideration.

There are also cases where you will be asked to give a six month projection of your estimated property taxes. These will normally go into your escrow account that will later be paid to the county assessor.

Buying a home isn’t as straightforward as you think it is. There is a lot of paperwork to consider, combined with the complex and complicated nature of buying a home. Consider talking to your realtor to learn and navigate through the process to familiarize yourself and make sure you are spending money towards the right places.

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