Buying a home is an exciting journey, whether it’s your first or your tenth. But beyond the price tag of your new home lie several additional costs that can catch many buyers off guard. From taxes to insurance, these expenses are crucial to consider as you budget for your home purchase. To ensure you’re fully prepared and to avoid any unpleasant financial surprises on closing day, familiarize yourself with these 13 potential extra costs associated with buying a home.

1. Appraisal Fee

Your lender may require a property appraisal to confirm its market value, which you’ll need to finance. Appraisal fees can range from $175 to $300.

2. Property Taxes

Lenders might roll your property taxes into your monthly mortgage payments. If not, you may need to show proof of payment annually.

3. Survey Fee

For resale homes, a current property survey is often necessary and can cost between $700 and $1,000.

4. Property Insurance

This covers the replacement value of your home and contents. Lenders will require proof of insurance to protect their loan collateral.

5. Service Charges

Setting up utilities such as phone or cable might involve installation fees.

6. Legal Fees

Even straightforward home purchases should involve a lawyer to review all documents. Legal fees vary, so it’s wise to shop around.

7. Mortgage Loan Insurance Fee

If your downpayment is below a certain threshold, you might need mortgage loan insurance, which could add 0.5% to 3.5% of your mortgage amount to your costs.

8. Mortgage Broker’s Fee

Some mortgage brokers charge a fee for their services, though many are compensated by lenders, which means no out-of-pocket costs for you.

9. Moving Costs

Hiring professional movers typically costs $50-$100 per hour for a van and three movers, with prices peaking in high-demand seasons.

10. Maintenance Fees

If you’re buying a condo, expect monthly fees for the upkeep of common areas.

11. Water Quality and Quantity Certification

If your home has a well, consider testing the water. Depending on your location, this might involve a fee.

12. Local Improvements

Improvements like sewers or sidewalks could significantly increase property taxes.

13. Land Transfer Tax

This tax is levied whenever a property changes hands, and the rate varies by location.

When planning your home purchase, it’s crucial to account for these additional expenses to ensure a smooth transition to your new home. By being well-informed and prepared, you can avoid last-minute financial stress and focus on the joy of your new beginning.