Additional Costs When Buying a Home

Posted by Linda Outhwaite on Wednesday, October 3rd, 2018 at 10:07am.

You’re ready to purchase a home, you’ve saved up your down payment now all that’s left to do is qualify for your mortgage and begin house shopping right? Well not quite, there are some additional costs that you may want to consider before you begin the search for your dream home. 

  • Lawyers Fees – You’ll need to hire a lawyer to review the terms of your offer which will cost around $2,000-$5,000 depending on the purchase price.
  • Home Inspection – This is not only a good idea but a necessary part of the buying process.  It’s important for you to be aware of any issues with the property before you purchase it.  Prices vary with the size of the home, but you can expect to pay approximately $500
  • Home Insurance – If you have a mortgage, you must have home insurance.  Prices will vary based on the cost of the home and contents inside but you should plan to spend approximately $800/year
  • Moving Costs – You can save here if you have the resources to move by yourself, but if you plan to hire movers you’ll be looking at about $1000
  • Maintenance – Owning a home means you can’t call up the landlord when something goes wrong, and some home maintenance items come with a hefty price tag.  Try to set aside 3%-5% of your home value each year for maintenance which would total about $20,000 per year.
  • Furniture – if you don’t have much furniture, or plan to purchase new furniture when you move in such as a couch set, dining set or bedroom set you’ll want to make sure you have the money saved ahead of time so you can purchase the items once you move in.  Depending on what you need to purchase, you could be looking at $5,000-$10,000. 

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