First-Time Home Buyer? 7 Costs to Plan for Beyond the Down Payment

The down payment gets most of the attention when buyers start budgeting, but it's far from the only cost involved in buying a home. Getting a full picture upfront can prevent an uncomfortable surprise right before — or right after — closing. Here's what else to plan for.

1. Closing Costs

Closing costs typically run 2–5% of the purchase price and cover a range of fees: loan origination, title insurance, attorney fees, recording fees, and more. On a $450,000 home, that's anywhere from $9,000 to $22,500 — a significant number that catches a lot of first-time buyers off guard if they've only budgeted for the down payment itself.

2. Home Inspection

Expect to pay $300–$600 for a standard home inspection, with additional costs if you add specialized inspections like radon, well, septic, or pest testing — all fairly common add-ons in our region.

3. Appraisal Fee

Your lender will require an appraisal to confirm the home's value, typically costing $400–$700, depending on the home's size and location. This is usually paid upfront, separate from your other closing costs.

4. Homeowners Insurance

Lenders require proof of homeowners insurance before closing, and your first year's premium is often paid in full at settlement. Costs vary widely based on the home's age, location, and coverage level, so getting quotes early in the process helps avoid a last-minute scramble.

5. Property Taxes and Prepaid Escrow

At closing, you'll typically need to prepay a portion of your property taxes and homeowners insurance into an escrow account, plus reimburse the seller for any taxes they've already paid covering your period of ownership. This amount varies significantly by location and time of year you close.

6. Moving Costs

Easy to forget in the excitement of closing, but movers, a truck rental, or simply the cost of replacing items that don't survive the move can add up quickly — often running anywhere from a few hundred to a few thousand dollars depending on distance and how much help you hire.

7. Immediate Home Needs

Few buyers move into a home needing zero adjustments. Even a well-maintained home often comes with a short list of immediate needs — new locks, window treatments, basic tools, or a first round of cleaning supplies and furnishings for a space you didn't have before.

A Realistic Way to Plan

Rather than budgeting only for your down payment, a good rule of thumb is to set aside an additional 3–5% of the purchase price to cover closing costs and immediate post-purchase expenses combined. Building in that buffer upfront means you're not scrambling to cover unexpected costs in the final days before closing — or the first weeks after you move in.

The Bottom Line

The down payment is just one piece of the total cost of buying a home. Understanding the full financial picture — inspection, appraisal, closing costs, insurance, and beyond — helps you walk into the process with realistic expectations and a lot less last-minute stress.

Trying to figure out your full budget for buying your first home? Contact Foraker Realty — we can help you map out the complete picture, not just the down payment.