10 unexpected costs when buying a home

Prepare to become a homeowner

Before you close, make sure your budget accounts for both your home and those additional homebuyer costs. Use this list to plan, but remember that financing major purchases before getting your loan can negatively affect your pre-qualified status!

Homeowners insurance

Like all insurance plans, price varies based on your home and policy. As an OCCU member, you may be eligible for special savings on insurance. Get a quote beforehand to be sure it fits your budget.

Utilities

You may be moving from a small space to a larger home. Be prepared to pay for electricity, gas, trash removal, water and sewage. Don’t forget the choice utilities like Internet, cable and phone lines too.

Property tax

Aside from your mortgage, you’ll need to pay homeowner taxes including property tax. Talk to your loan officer to review your total monthly payment.

Association fees

Sometimes homeowners are required to join a homeowner’s association. Each association has its own community regulations which comes with a monthly or annual upkeep fee.

Yard maintenance

City code and homeowner’s association regulations often require you to either pay for yard maintenance services or yard equipment to do the job yourself.

Upgrades

Some homes are dated when you move in, others become dated over time. To keep your home up to date, you’ll likely need to upgrade over the years. Consider the cost of fresh paint, gutter repairs, and remodeling rooms like kitchens and bathrooms. 

Commuting

Depending on traffic and the distance between your home and work, the cost of gas adds up quick. Calculate your monthly cost to know what to expect.

Pest control

To keep pesky critters out of your home, you may need regular pest control. Frequency depends on situation, but often bi-monthly treatment is recommended.

Furniture and dècor

If you’re upsizing or moving into your first home, you’ll have a lot of empty space to fill. Make a furniture and décor shopping list, then calculate the cost. Just be sure not to make any big purchases that might impact your credit score before your mortgage is finalized.

The unexpected

No matter how well you plan, there will always be unexpected homeowner costs. In case of damages or additional fees, keep a growing emergency fund.