The Hidden Costs of Buying a Home (and How to Plan for Them Like a Pro)
The Hidden Costs of Buying a Home (and How to Plan for Them Like a Pro)
Most buyers know they need a down payment. But what about the other costs — the ones that sneak in before the keys are even in your hand?
We’re not here to sugarcoat it: buying a home is one of the most exciting and financially complex moves you’ll make. And while it can be affordable with the right plan in place, too many buyers get blindsided by expenses they didn’t see coming.
Let’s change that. Here’s what you really need to budget for — and how to prepare like a pro.
You’ve probably heard about these before, but they’re worth breaking down so you know where your money’s going:
1. Earnest Money Deposit
Think of this as your “good faith” deposit to show sellers you’re serious. Usually 1–3% of the purchase price, and it goes toward your closing costs or down payment if the deal goes through.
2. Appraisal Fee
Your lender will order an appraisal to confirm the home’s value. This typically runs $500–$800 depending on the property type.
3. Closing Costs
Here’s where it adds up. Closing costs usually total 2–5% of the purchase price, and may include:
Now let’s talk about the less obvious stuff — the things that catch buyers off guard if no one preps them ahead of time (which is why we do).
Prepaid Property Taxes and Insurance
At closing, you often pay upfront for a few months of property taxes and a full year of homeowners insurance. It’s not extra money, but it’s money you need now — and it can be a few thousand dollars.
HOA Fees and Transfer Costs
If the home is part of an HOA, you might owe a move-in fee, document prep charges, or even a reserve contribution upfront.
Immediate Repairs or Upgrades
Even with a newer home, there’s almost always something — blinds, a fridge, new locks, or a coat of paint. Budget at least $1,000–$2,000 for move-in essentials.
Utility Set-Up and Deposits
Plan for connection fees or deposits for water, electric, gas, trash, and internet — especially if it’s your first time setting up services.
Movers, Boxes, and All the Moving Stuff
Whether you rent a truck, hire pros, or bribe your friends with pizza, moving has a cost. Don’t let it sneak up on you.
Here’s what we tell our buyers: Yes, these costs are real — but no, you don’t have to figure it out alone. When we do your pre-approval, we also walk you through a detailed cost breakdown so you’re never guessing.
A few smart strategies:
If you're thinking about buying but aren’t sure what’s realistic for your budget, that’s our wheelhouse. Our team doesn’t just do mortgages — we build game plans. Ones that actually make sense for your financial picture.
Want to walk through your numbers together — no pressure, no surprises?
Schedule a quick consult with our team or send us a message.
We believe the more you know upfront, the better your experience will be from start to closing day (and long after). When you're prepared, you're powerful. And we’re here to make sure you never feel in the dark.
Let’s get you home — the smart, confident way.
—
The Everetts Lending Team
Helping Colorado buyers feel ready, not rattled.
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