Expenses to Expect When Buying a Home

What First-Time Homebuyers Should Budget For (Beyond the Sale Price)

Buying your first home is an exciting milestone—but many new buyers underestimate the full scope of costs involved. At Your Home Sold Guaranteed Realty - Kling Group, we want you to be confident and fully prepared.

Here are the most common expenses first-time buyers should expect when stepping into homeownership:

Down Payment

While 20% has long been the standard, many buyers today use down payments as low as 3–5%, depending on loan programs. Keep in mind: the lower your down payment, the higher your monthly mortgage—and you may need to carry PMI.

Private Mortgage Insurance (PMI)

If your down payment is under 20%, most lenders will add PMI to your monthly payment. This cost is temporary and can often be removed once your loan balance drops to around 78–80% of the home’s value.

Closing Costs

These are one-time fees due at closing, typically ranging from 2–5% of your loan amount. This includes lender fees, title services, appraisal, credit checks, and more. We always walk our clients through these details before closing day.

Moving Expenses

Whether you're moving across town or across the state, moving comes with a cost. Local moves often range from $800–$2,500, while long-distance moves can reach $10,000+ depending on how much you’re transporting.

Ongoing Costs to Plan For

Once you’re in your new home, there are recurring expenses you’ll want to account for, such as:

• Homeowners insurance

• Property taxes

• HOA fees (if applicable)

• Regular maintenance and unexpected repairs

Understanding these costs up front helps buyers set a realistic and sustainable budget—one that protects your finances after you move in.

Want help building a homebuying budget that makes sense for your lifestyle? Let’s talk about your goals and put a plan in place that works for you.