The hidden costs of buying a home.

1. Home inspection.

Cost: $300-$500

A home inspection is not always a required part of the homebuying process, but having your home inspected by a professional can save you thousands of dollars in future repairs. If the inspector finds any significant issues, you can use them as a bargaining chip to bring down the price of the home or ask the seller to repair them before you close.

2. Appraisal fees. 

Cost: $300-$600

Most lenders require an appraisal to confirm that a home is worth the under contract price. If the appraisal comes in lower, you may need to renegotiate with the seller or cover the price difference out of pocket.

3. Closing costs.

Cost: 2-5% of the home’s purchase price

Closing costs may be the most substantial hidden expense in the homebuying process. While some buyers are prepared to handle the down payment, they can be surprised by closing costs, including:

• Loan origination fees. Lenders charge this fee to cover the administrative work that’s involved in processing your loan.
• Title insurance and title search. Title insurance protects both you and the lender from potential ownership disputes. The title search is conducted to ensure there are no existing claims on the property.
• Recording fees. Local governments charge these fees to make your ownership official in public records.
• Escrow fees. An escrow company manages the transfer of funds and important documents between buyer and seller.

These costs are usually paid upfront at closing, so be sure to budget for them alongside your down payment.

4. Property taxes.

Cost: Varies from state to state and county to county

Property taxes are an ongoing expense that can vary significantly depending on where you live. While most people understand they’ll pay property taxes, it’s easy to overlook just how much these can cost annually. Many lenders require you to set up an escrow account where a portion of each mortgage payment goes toward your property taxes, as well as homeowners’ insurance.

Be sure to check the local property tax rate before purchasing and assess if your budget will allow the annual tax rate. Know that taxes may increase once you purchase the home if a special property tax reassessment happens.

5. Private mortgage insurance (PMI).

Cost: 0.3-1.5% of the loan (annually)

If your down payment is less than 20% of the home’s purchase price, most lenders require you to have private mortgage insurance (PMI). PMI protects the lender if you default on the loan, and it typically costs between 0.3% and 1.5% of the loan amount annually.

PMI can be removed once you reach 20% equity in the home through mortgage payments and appreciation. Still, it’s essential to factor in this monthly cost if you plan to put down less than 20%.

💡 Tip: Ask your lender about PMI removal policies up front - some remove it automatically, while others require you submit a request.

6. Homeowners insurance.

Cost: $1,500-$3,000 (annually)

Homeowners insurance is a necessary expense that protects you in the event of natural disasters, theft, or accidents. Many lenders require buyers to pay for the first year’s premium upfront at the time of closing. Average homeowners’ insurance costs can vary, depending on the location, age, and condition of the home.

If the property is in a high-risk area for natural disasters, like a flood zone or an area prone to earthquakes, additional coverage, like flood or earthquake insurance, may be required, adding to your annual insurance costs.

💡 Tip: Bundling your home and auto insurance can sometimes help reduce your insurance premiums.

7. Professional cleaning.

Cost: $120-$325

Some sellers will deep clean their home before putting it on the market, but they may not be as detailed when they move out. Real estate contracts generally require the home to be in “broom-clean” condition, but this means a very basic cleanup, with floors swept and trash removed. You may want your home professionally cleaned and sanitized before you move in. Be sure to budget for this cost.

8. Immediate repairs.

Cost: Varies

Whether you’re buying a new construction home or a new-to-you house, you can expect to cover some repairs. From a fresh coat of paint to new window treatments and light fixtures, to replacing carpets and appliances, this can cost just a few hundred dollars to several thousand or more.

9. Moving.

Cost: $500-$3000

The cost of the actual move is often overlooked, but can add up, especially for long-distance moves or if you need professional movers. Moving expenses include packing supplies, rental trucks, or hiring a moving company, which can cost a few hundred to several thousand dollars.

💡 Tip: Booking your move during the middle of the month or on a weekday can sometimes help lower costs.


Don’t let the hidden costs of moving take you by surprise! Use our guide to be prepared for the true cost of moving.

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Information accurate as of 7/17/2025. All information presented on this page is for educational purposes only and doesn’t constitute tax, legal, or accounting advice. It is to be considered as general information, not recommendations. Please consult with an attorney or tax professional for guidance. All Credit Union loan programs, rates, terms, and conditions are subject to credit approval and may change at any time without notice. Subject to membership eligibility requirements.