The True Cost of Buying Your First Home

The True Cost of Buying Your First Home
A comprehensive checklist for first-time homebuyers to understand all expenses beyond the purchase price
Beyond the Down Payment
Many first-time buyers focus solely on saving for a down payment, but closing costs and other expenses can add thousands to your home purchase. Understanding these costs upfront helps you budget effectively and avoid surprises at closing.
Closing costs typically range from 2-5% of your home's purchase price, meaning on a $300,000 home, you could pay $6,000-$15,000 in additional fees.
Essential Pre-Closing Costs
Home Inspection
$300-$600
Professional assessment of property condition, structural issues, and major systems
Appraisal Fee
$400-$800
Lender-required evaluation to determine fair market value of the property
Survey Fee
$275-$575
Confirms property boundaries and identifies any encroachments or easements
Loan-Related Closing Costs
Origination Fee
2.75-2.25% of loan amount
Broker's fee for overseeing your loan process through closing. 
Credit Report Fee
$120-$225
Cost for lender to pull and review your credit history
Discount Points / Rate Buy Down
1% of loan amount per point
Optional upfront payment to reduce your interest rate over the loan term (Buying down the Rate)
Title and Legal Fees
Title Insurance
Protects against ownership disputes and liens. Owner's policy typically costs $500-$2,000 depending on home value.
Title Search
$200-$400 to verify clear ownership and identify any existing liens or claims.
Attorney Fees
$250-$500 in states requiring legal representation during closing process.
Government Fees and Taxes
Recording Fees
$100-$190 to officially record the deed and mortgage with local government
Transfer Taxes
Varies by location, typically 0.1-2% of purchase price paid to state or local government
Property Taxes
Prorated amount from closing date to end of tax year, varies significantly by location
Insurance Requirements
Homeowner's Insurance
First year premium paid at closing, typically $900-$3,000 annually. Required by lenders to protect their investment in your property. Changes with the value of the home. 
Flood Insurance
Required in flood zones, $200-$700 annually. Even outside flood zones, consider coverage as standard policies don't cover flood damage.
PMI (if applicable)
Private Mortgage Insurance required with less than 20% down payment, typically 0.3-1.5% of loan amount annually.
Moving and Immediate Costs
01
Moving Expenses
Professional movers: $800-$2,500 for local moves, $2,500-$5,000 for long-distance. DIY options significantly less expensive.
02
Utility Connections
$100-$500 for connecting electricity, gas, water, internet, and cable services. Some require deposits.
03
Immediate Repairs
Budget $1,000-$3,000 for urgent fixes identified during inspection or immediate needs like locks, alarm, and cameras. Ask for a Home Warranty. 
Cost Breakdown by Price Range
$200K
Home Price
Total closing costs: $4,000-$10,000
Plus moving and immediate expenses
$300K
Home Price
Total closing costs: $6,000-$15,000
Plus moving and immediate expenses
$400K
Home Price
Total closing costs: $8,000-$20,000
Plus moving and immediate expenses
Remember: These are estimates. Actual costs vary by location, lender, and specific circumstances. We will provide a copy of the county taxes and provide up to three homeowners insurance quotes. 
Your First-Time Buyer Action Plan
1
Budget Beyond Down Payment
Save an additional 3-5% of home price for closing costs and immediate expenses. We will show you how to reduce this amount. 
2
Get Pre-Approved
Understand your total monthly costs including taxes, insurance, and PMI
3
Go over your Loan Estimate 
We will go over the loan estimate and discuss closing costs together 
4
Plan for the Unexpected
Keep additional funds available for repairs and moving expenses. Ask for a Home Warranty 
Contact me today for a Free Consultation!
Calendly
Free Mortgage Consultation  - Jessica Denegall
Thank you for booking a Mortgage Consultation. This call is simply a chance for me to understand your lending goals and for you to get your questions answered.There’s no credit pull and no documents needed, those come later if you decide to move forward with the application.
 Lonhub Mortgage, LLC / Texas Broker / NMLS: 2004099 /  NMLS: 2139277 / 1300 McGowen St, Houston, TX 77004