The 7 Costs of Buying a Home

Most people think buying a home is just about saving a down payment. It's not — but the good news is the other costs are smaller than they sound, and some can be lowered or even covered for you. Let's walk through all 7 so you can plan with confidence. 🙌

1The down payment

This is the chunk of the price you pay up front. It's the cost most people already know about — but it's often smaller than you think.

You do not need 20% down to buy a home. Many loans let buyers put down far less, and some programs go very low for those who qualify. The rest of the price is covered by your home loan.

2Closing costs

These are the fees to finish the sale and set up your loan. Think lender fees, title work, and a few government charges — all rolled together on closing day.

As a general guide, closing costs often land around 2% to 5% of the price, but this varies a lot by loan and lender. Your lender will give you a clear written estimate early on, so there are no surprises.

3Earnest money deposit

When your offer is accepted, you put down a "good-faith" deposit called earnest money. It simply shows the seller you're serious.

Here's the part people miss: this money isn't an extra cost. It's held safely, and at closing it gets applied to your purchase — usually toward your down payment or closing costs. So it comes back to work for you.

4Home inspection

An inspection is a trained pro checking the home top to bottom — roof, plumbing, wiring, and more. You usually pay for it up front, and it's one of the smartest dollars you'll spend.

Why it matters: an inspection can catch big problems before they become your problems. If something serious turns up, we can ask the seller to fix it, credit you, or we walk away. It protects you.

5The appraisal

Your lender wants to make sure the home is worth what you're paying. So they order an appraisal — an expert's opinion of the home's value.

It's usually a modest, one-time fee paid during the loan process. It protects you too: it helps make sure you're not overpaying for the home.

6Moving costs

Easy to forget, but real. This covers movers or a truck rental, boxes, and setting up utilities like power, water, and internet at your new place.

You can keep this low by moving during the week, getting a few quotes, or rounding up friends and pizza. Just leave a little room in your budget for it.

7Ongoing costs

Once you own, a few costs come with the keys. These are part of monthly homeownership — but they're also part of building your own wealth instead of your landlord's.

• Property taxes — A yearly tax on your home, often collected a little each month with your mortgage payment.
• Homeowners insurance — Protects your home and belongings. Usually required by your lender, and worth every penny.
• HOA dues (maybe) — Some Vegas neighborhoods have a homeowners association with a monthly fee for shared amenities and upkeep. Many homes have none — I'll always tell you before you fall in love with a place.

8The bottom line