12 Hidden Costs First-Time Homebuyers Don't Expect

You saved for the down payment, got pre-approved for a mortgage, and found your dream home. But the purchase price is just the beginning of what you'll spend. Here are 12 costs that catch first-time buyers off guard.

Closing costs run 2-5% of the home price. On a $350,000 home, that's $7,000-$17,500 — on top of your down payment. These include lender fees, title insurance, attorney fees, appraisal, and prepaid taxes and insurance. Ask your lender for a detailed estimate early in the process.

Home inspection costs $300-$600 but can save you thousands. Don't skip it. Additional specialized inspections for radon ($100-$200), mold ($200-$600), sewer scope ($100-$300), and termites ($75-$150) are worth considering depending on the property.

Homeowner's insurance is required by your lender and costs $1,000-$3,000+ per year depending on location and coverage. Flood insurance, if required, adds another $500-$2,000. Get quotes before closing so there are no surprises.

Property taxes are often underestimated. The current owner's tax rate may not reflect your purchase price. In many areas, property taxes are reassessed at the time of sale, which can increase them significantly. Check with the county assessor.

PMI (Private Mortgage Insurance) is required if your down payment is less than 20%. It adds $100-$300+ per month to your payment. The good news: it drops off once you reach 20% equity. Factor this into your monthly budget calculations.

Moving costs $1,000-$5,000+ depending on distance and how much stuff you have. Plus you'll spend $500-$2,000 on immediate needs like curtains, basic furniture, cleaning supplies, and tools you didn't need as a renter.

Utility setup and deposits can cost $200-$500. Your monthly utility bills will likely be higher than as a renter, especially if you're going from an apartment to a house. Budget an extra $100-$300/month for the first year until you know your actual costs.

Lawn and exterior maintenance costs $100-$300/month if you hire it out, or significant time if you DIY. Lawn mower, trimmer, leaf blower, and basic landscaping tools cost $500-$1,500 to set up from scratch.

The 1% rule says you should budget 1% of your home's value per year for maintenance and repairs. On a $350,000 home, that's $3,500/year or about $290/month. This covers everything from HVAC maintenance to a leaky faucet to eventual roof replacement.

HOA fees (if applicable) range from $200-$500+/month and cover exterior maintenance, amenities, and community upkeep. Read the HOA documents carefully — they can include restrictions that surprise you and special assessments that cost thousands.

Furniture and furnishing a larger space adds up fast. Most first-time buyers moving from apartments spend $5,000-$15,000 on furniture in the first year. Spread this out over time rather than buying everything at once.

The bottom line: budget an additional 5-10% of the purchase price for first-year costs beyond the down payment and closing costs. On a $350,000 home, that's $17,500-$35,000. Building this buffer prevents financial stress during what should be an exciting time.