07/31/2026
๐ก As a homebuyer, there are many costs involved in a real estate transaction. Where exactly does your money go?๐ฐ
โช๐๐ป๐๐ฒ๐ฟ๐ฒ๐๐ - The cost of borrowing money through your mortgage, typically included in your monthly payment.
โช๐ฃ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐ง๐ฎ๐
๐ฒ๐ - Local taxes based on the value of your home, typically included in your monthly payment.
โช๐๐ผ๐บ๐ฒ ๐๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ - Required by your lender for your mortgage, protects your home and belongings, typically included in your monthly payment.
โช๐๐น๐ผ๐๐ถ๐ป๐ด ๐๐ผ๐๐๐ - Typically 2-5% of the purchase price, covers administrative & transactional expenses, paid at closing.
โช๐๐ผ๐บ๐ฒ ๐๐ป๐๐ฝ๐ฒ๐ฐ๐๐ถ๐ผ๐ป - One-time fee for a professional to inspect the home and identify any potential hazards/issues before the purchase is finalized.
โช๐๐ฝ๐ฝ๐ฟ๐ฎ๐ถ๐๐ฎ๐น ๐๐ฒ๐ฒ - One-time fee for a professional to confirm market value of the home on the lenderโs behalf.
โช๐ ๐ผ๐๐ถ๐ป๐ด ๐๐ผ๐๐๐ - Expenses for boxes, packing supplies, vehicles, and/or professionals to relocate all your belongings to your new home.
โช๐จ๐๐ถ๐น๐ถ๐๐ ๐ฆ๐ฒ๐๐๐ฝ - Some utilities come with one-time activation fees or deposits required to start services like electricity, water, gas, internet, and trash collection.
โช๐ฅ๐ฒ๐ฝ๐ฎ๐ถ๐ฟ๐ - Money set aside for short-term repairs & renovations as needed after gaining possession of your home.
โช๐๐ข๐ ๐๐ฒ๐ฒ๐ (if applicable) - Some neighborhoods are governed by a Homeowners Association, and are subject to monthly or annual payments that get put toward maintaining shared amenities, common areas, etc.
โช๐๐ผ๐บ๐ฒ ๐ช๐ฎ๐ฟ๐ฟ๐ฎ๐ป๐๐ (if applicable) - Optional coverage that can help repair or replace major home appliances suffering from normal wear and tear. One-time fee and active for a fixed time period, typically one year after closing.
โช๐ ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ ๐๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ (if applicable) - Required by the lender if down payment is less than 20%. Drops off your bill when 20% equity is reached, typically included in your monthly payment.
