A smart home buyer always strives to be prepared at all times. From start to finish, a home buyer needs to be familiar with the whole home buying process, aware of the risks and be ready for the hurdles that might come along the way.

One thing that you also need to prepare for are the different costs that come with home buying. Home buying costs are not just limited to the home’s sticker price or the mortgage payment.

There are a number of out-of-pocket costs that every aspiring home buyer has to think about. The down payment amount and the closing costs are just a portion of all the added expenses that you might have.

Here are some the most common home buying costs that you need to factor into your home buying budget:

Home Inspection Costs

One way of avoiding any more expenses once the sale closes is by giving the property a once-over through a home inspection before you make a purchase.

However, a professional home inspection service does not come cheap. You may have to pay a few hundred bucks but it goes a long way.

A well-done inspection would help you decide whether buying a property is worth it or it can help you negotiate the seller’s asking price.

Possible repair, renovation, and other immediate costs

You should consider making the necessary changes that you might need once the property is sold to you. You’re going to need to change the locks so you might want to hire a professional locksmith to do that for you.

Deposits might be needed to get your utilities started and you should be in the loop for any maintenance costs for your new home.

Keeping an emergency savings account to cover any unplanned expenses should be in order. Smart homeowners should be able to have enough savings for the next six months after moving into the property.

Got questions? We have answers.

Move-in expenses

Once the sale closes and the home is finally yours, you have to begin thinking about hiring movers.

The costs vary depending on where you’re currently living, how far your new home is from your old one, and how much stuff is needed to be hauled.

It’s always a good idea to get quotes from different moving companies and compare. There are movers who overprice their services so you have to be aware of those.

One way to check if a moving company is reliable is to check reviews or ask for referrals. Another way is to check if that company is licensed by the Federal Motor Carrier Safety Administration.

Advance and future expenses

Beyond closing fees, there are certain home buying costs that you need to be prepared for at the closing table.

Some lenders will require their borrowers to pay different fees upfront. Some of the fees include homeowner’s association dues, a year’s worth of taxes, and mortgage upfronts.

Lenders will also suggest building an escrow account in order to have enough money set aside for future expense. Escrow accounts serve as a savings account to cover such costs.

It’s important for home buyers to think ahead and prepare for these things in order to avoid any unforeseen hurdles in the future.

Buying a home? Talk to us.