You don’t want to fall in love with a home only to find out that the cost of living there will have you stressed. Sure, some costs associated with homeownership are predictable, like your mortgage payment. Buy many costs may take homeowners by surprise. Here are other considerations to include in your home buying budget.

Closing Costs

Mortgage taxes, lender application fees, attorney’s fees, title insurance, and other fees can add up! A buyer and seller can negotiate how much each party pays, but unless the seller agrees to pay all of the costs, you’ll be responsible for a portion of these fees. 

Down Payment

Some lenders require a significant down payment at closing. While it can take time to save up for a down payment, paying a lump sum upfront will lower your monthly down payment.


Try to get a clear sense of what to budget for utility bills. If you know of someone in the neighborhood with a similar house, consider asking what they pay for their monthly bills. This can include lawn care, water bills, or even the local price of groceries.

Mortgage Insurance

If you don’t pay at least 20% of the purchase price as a down payment, your lender will probably require you to pay private mortgage insurance (PMI). This insurance protects the lender in the case that you would default on the loan. 

When you’re ready to become a homeowner, chat with a Freedom 512 agent. We know the Austin area and will make your home search simpler!

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