The Costs of Buying a Home Today

March 2025

Buying a home today isn’t the same as buying a home back in 2012 or 2008. Costs fluctuate, financing changes. Below is a list of some costs to keep in mind as you save up for your future new home. 

𝗗𝗼𝘄𝗻 𝗣𝗮𝘆𝗺𝗲𝗻𝘁

• You don’t need 20% down - having 3-10% down is much more common, but it does have advantages. With a higher down payment, you can place more competitive offers, you’ll have lower mortgage payments, and lower or no Private Mortgage Insurance (PMI). 
  • You'll need a minimum of 3% with a conventional loan or 3.5% with FHA loan
• The exception to all the above would be for our amazing veterans who may qualify for 0% down with VA loan.

𝗖𝗹𝗼𝘀𝗶𝗻𝗴 𝗖𝗼𝘀𝘁𝘀

These can add up, often amounting to 1-2% of purchase price, they include: 

• Setting up escrow account which is the pre-payment of 6-12 months of homeowners insurance and property taxes.
• Title fees (title insurance policy, deed recording, etc.)
• Loan fees like loan origination cost, credit check fee, appraisal, etc. These fees can vary from bank to bank so it never hurts to shop around for your loan!
• In today’s market we are seeing closing costs get negotiated again, so there could be a chance the seller can offer you a closing credit towards these!

𝗜𝗻𝘀𝗽𝗲𝗰𝘁𝗶𝗼𝗻

• A general home inspection can run from $300-$500.
• If there is a Well & Septic on the property or you are concerned about Radon in the basement, you’ll want to add on around $125-$250 for each of those inspections. 

Don’t forget these other costs to consider:

• Moving costs - whether you hire movers or rent a U-Haul.
• Any Immediate renovations/updates you want to make - even paint can add up!
• New furniture - Bring your measuring tape and confirm your current furniture fits well in the space!
• Emergency fund - Being a homeowner means being responsible if anything needs repair or replacement. I'd recommend having at least $5,000 that you can pull if needed.
  • PRO TIP: Buy a home warranty if you want to mitigate the risk of big surprise costs. These are often around $500 and can be renewed annually. I can provide recommendations of some reputable companies based in the Midwest.

If you're ready to get started on your home buying journey, reach out.

As part of my new client onboarding session, we'll walk through the current status of the market, the ins and outs of the buying process, and prepare you for any costs you may face. I'm happy to act as a guide and resource for any questions you may have.