Buying a home involves several upfront and ongoing costs. Here's a breakdown of what buyers should be prepared to pay:

Cost

Description

Estimated Cost

Down Payment

A percentage of the home's purchase price paid upfront.

3-20% of the home price ($9,000-$60,000 on a $300,000 home)

Lawyer Fee (optional)

Although optional, its highly recommended to ensure a smooth transaction. Legal assistance representing you can facilitate reviewing contracts, handling paperwork, and ensuring a smooth transaction to closing.

$500 - $1,500

Mortgage Origination Fee

Fee charged by the lender for processing the loan application.

0.5-1% of the loan amount ($1,500 - $3,000 on a $300,000 home)

Home Inspection

An inspection to identify potential issues with the property before closing.

$300 - $500

Appraisal Fee

An assessment of the property's value by a licensed appraiser usually ordered by the lender.

$300 - $600

Closing Costs

Fees related to processing the mortgage, title insurance, and other administrative expenses. To estimate some of the title fees click here.

2-5% of the loan amount ($6,000 - $15,000 on a $300,000 home)

Private Mortgage Insurance (PMI)

Required if the down payment is less than 20%.

0.3-1.5% of the loan amount annually ($900 - $4,500 per year on a $300,000 home)

Homeowners Insurance

Insurance that covers potential damages to the property.

$1,000 - $2,000 annually

Property Taxes

Annual taxes paid to the local government. Varies by location.

1-2% of the home's value annually ($3,000 - $6,000 on a $300,000 home)

HOA Fees

Monthly or annual fees if the property is part of a homeowners association.

$200 - $500 monthly

Moving Costs

Expenses related to moving into the new home. Use our preferred partner College Hunks Hauling Junk

$500 - $2,000