What It Really Costs to Buy a Home (Hint: It’s Not Just the Down Payment)

Think the down payment is your only expense? Think again. Here’s a breakdown of the real costs every homebuyer should plan for—before you fall in love with that dream home.

Buying a home is one of the most exciting milestones in life; but if you’re only budgeting for the down payment, you’re setting yourself up for a financial surprise party (and not the fun kind). 🫣

Let’s break down the real costs of buying a home, so you can feel confident, prepared, and totally in control from start to finish.

💸 1. Down Payment

This is the most obvious cost, but it’s not one-size-fits-all. Depending on your loan type, your down payment could range from 0% to 20% (or more). VA loans, USDA loans, and some first-time buyer programs require little or no down payment, but others may require more upfront.

Example:

• $350,000 home at 5% down = $17,500 upfront
• Same home at 20% down = $70,000 upfront

Big difference, right?

🧾 2. Closing Costs

Estimated: 2%–5% of the purchase price

These are some of the fees and services required to close the deal:

• Title insurance
• Lender fees
• Appraisal
• Home inspection
• Attorney fees (if applicable)
• Escrow deposits

💡 On a $350,000 home, you could pay anywhere from $7,000–$17,500 in closing costs.

🛠 3. Home Inspection + Appraisal

These two often come out-of-pocket even before closing.

• Inspection: ~$300–$600
• Appraisal: ~$500–$800

They’re both critical. The inspection helps you avoid hidden issues, while the appraisal protects you from overpaying.

🏡 4. Earnest Money Deposit

Think of this as a “good faith” deposit to show sellers you’re serious. It’s usually 1%–2% of the purchase price and gets applied to your closing costs later, unless you back out for a non-contingency reason.

🧼 5. Moving Expenses

Whether you're DIYing or hiring pros, moving isn’t free. Think:

• Rental truck + gas
• Movers
• Packing supplies
• Storage (if needed)
• Pizza for everyone helping 😅

Plan on $500–$2,000, depending on how far and how much you’re moving.

🛋 6. New Home Set-Up Costs

New house = new stuff. Even if you’re not splurging on renovations, you’ll likely need:

• Window coverings
• Appliances
• Lawn equipment
• Wi-Fi setup
• Light bulbs and batteries (seriously...so many!)

🧾 7. Ongoing Expenses After Closing

Don’t forget to factor in:

• Monthly mortgage payment
• Property taxes
• Homeowners insurance
• HOA fees (if applicable)
• Utility deposits
• Maintenance costs (you’re the landlord now!)

✅ The Bottom Line

Buying a home is absolutely worth it; but knowing the full picture of costs ahead of time helps you avoid stress and surprises.

As your Realtor, I’ll walk you through every step and connect you with lenders and inspectors who won’t leave you guessing. 💪

You can reach out to me at 865-712-1993 or Trish@TrishManciniHomes.com.  You can also check out my website at TrishManciniHomes.com (soon to be HomeSweetClosed.com).