The true cost of buying a home, beyond the price
The price is only the beginning. Add up these items before you decide how much house you can afford.
One-time costs
| Cost | What it is |
|---|---|
| Down payment | The part of the price you pay yourself |
| Closing costs | Lender, title, escrow, recording and other fees. Ask lenders for a written estimate |
| Inspection and appraisal | Paid during the purchase, often before closing |
| Moving and setup | Movers, utilities, locks, basic furniture |
| Early repairs | Items found at inspection or soon after |
Ongoing costs
| Cost | Notes |
|---|---|
| Principal and interest | The core loan payment |
| Property tax | Varies by place and can change over time |
| Homeowner's insurance | Required by lenders |
| Mortgage insurance | Often required with a small down payment |
| HOA dues | For condos and some communities |
| Utilities and upkeep | Repairs, yard, appliances, a reserve for big items |
How to test your budget
Put the total monthly figure from the estimator next to your current rent and your other debts. Then ask whether you could still save, handle a surprise repair and keep your lifestyle. If the answer is no, a lower price or a longer saving period may be wiser.
Get help early
A HUD-approved housing counselor can review your numbers before you commit. If a payment ever becomes hard, contact your lender or a counselor early, since options are better before payments are missed.
Sources and further reading
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