Jeff’s Carlsbad Blog for First Time Home Buyers


Costs Associated with Buying a Home

Posted in Financial by Jeff Dowler on November 8, 2006

moneysign2.gifThere are a number of possible costs associated with buying a home that you should be aware of. This is NOT a complete list, and depending on your particular situation and location you may encounter only some of these or perhaps other costs. I am not a financial adviser nor a tax expert, so for any questions about these matters I recommend speaking with the appropriate professional. You should receive a estimate of your closing costs when working with your chosen mortgage lender.

Down-payment (with offer)

Inspections (home inspection, any other inspections that you elect)

Application Fee for loan (often paid at closing but may be an upfront fee)

Appraisal Fee (normally paid at closing, typically required by the bank)

Property Taxes (pre-paid at closing, plus pro-ration for portion paid by seller)

Supplemental property/city taxes/county (area-specific, common in California)

Monthly Maintenance/HOA/Condo fees (may also need to reimburse seller pro-rata)

Points on the Loan (depends on the loan you select and may be optional)

Mortgage Insurance (may be required if down-payment is less than 20%)

Title Insurance (typically required by the lender; may also buy Owner’s Title Insur.)

Escrow Fee (if escrow company used – depends on state, such as California)

Attorney Fees (if attorney is used; common in Massachusetts to handle transaction)

Homeowner’s Insurance (normally 1 year paid in advance, may include some pre-paid amount if required by lender and insurance is included in monthly payments)

Moving Costs (movers, storage, supplies, travel, etc – depends on distance)

Miscellaneous Fees associated with Property Transfer (may include recording fees, courier fees, wire transfer fee, flood certification, overnight mail, among others)

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2 Responses to 'Costs Associated with Buying a Home'

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  1. […] Buying a house is an expensive proposition, and there will be monthly expenses you can’t avoid – the loan (including principal, interest, taxes and possibly homeowner’s insurance), condo or HOA fees (in some cases), Mello-Roos (again in some cases here in California), and more. You should already know about getting pre-approved, and if you have done so you now know what the bank says you can afford in a loan. But that’s deceptive. […]


  2. […] a house is an expensive proposition, and there will be monthly expenses you can’t avoid – the loan (including principal, […]


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