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If you’ve ever talked to a first-time home buyer about buying a home, they probably warned you about the hidden costs of buying a home. Many who are buying a home for the first time, after all, find themselves surprised by the costs involved. The reality, however, is that while there are always (often unexpected) costs that lie outside of the home listing price, you can prepare for these costs beforehand. As part two of a two-part series, here is a look at more of the most common “hidden costs” associated with buying a home.

Head here to read part one of this series.

Closing costs

Once your offer is accepted, the lender will run the paperwork and crunch some numbers to come up with your closing costs. Closing costs typically run at about 2.5% of the loan amount, and many of these costs are controlled by third parties who were involved in the loan approval process. Closing costs typically include the following:

Lender fees

Lender fees cover costs associated with processing and funding a loan, including application fees, attorney fees, recording fees, and underwriting fees.


Appraisal typically runs a few hundred dollars and covers the cost of having an appraiser evaluate the value of your home based on its size, condition, function, and quality.

Title or attorney fees

These fees include any government filing fees, escrow fees, notary fees, and other expenses associated with transferring the deed over to you.


This cost is interest that is prorated from the date of your closing to the first of the following month.


Your lender may request a survey to verify boundary lines and ensure that there is no encroachment on the lot. (Sometimes the seller will cover this expense.) This is usually a few hundred dollars but can be as high as a thousand dollars depending on the amount of labor involved. This fee may be included in your closing costs.


You probably already knew that you’d be paying taxes, but many home buyers forget that you actually prepay these taxes at closing. This is where the term “escrow” comes into play; if your mortgage lender pays your property taxes and homeowners insurance bill for you each year, you’ll have an escrow payment attached to your regular mortgage payment.

Moving Costs

Don’t forget to factor in moving costs as you prepare to move into your new home. Moving costs include truck rental and moving company services and could run thousands of dollars depending on the labor involved, length of the move, number of possessions, number of specialty items involved (e.g., a piano), etc.