The Real Cost of Buying Your First Home (Beyond the Price Tag)

When you're saving for your first home, it's easy to focus on just one number: the purchase price. But the truth? That’s just the beginning.

In this guide, we’ll unpack the real costs of buying a house, from inspections to insurance, so you can feel prepared, not surprised.

How Much Money Do You Really Need to Buy a House?

A good rule of thumb? Budget for 8-12% of the home price to cover all costs, not just the down payment.

For example:

• Home price: $350,000
• Down payment (10%): $35,000
• Closing costs (3-5%): $10,500-$17,500
• Moving, inspections, reserves: ~$5,000+

Total upfront: $50,000+, and that doesn’t even include future monthly costs.

One-Time Costs First-Time Buyers Should Expect

Buying a home comes with several one-time expenses you should plan for:

• Home inspection: $300 - $600
• Appraisal fee: $400 - $700
• Earnest money deposit: 1-3% of home price (applied later)
• Moving costs: $500 - $2,500 depending on distance
• Loan origination & underwriting fees: ~$1,000 - $2,000
• Title search and insurance: $1,000+
• HOA transfer or set-up fees (if applicable)

These costs aren’t optional, but knowing them upfront helps you plan wisely.

What Are Closing Costs, and How Much Are They?

Closing costs are all the fees associated with finalizing your home purchase. Expect to pay 2% to 5% of the home’s purchase price.

What’s included:

• Lender fees (application, underwriting, processing)
• Title services
• Attorney fees (in some states)
• Escrow fees
• Prepaid property taxes and homeowners insurance

For a $300,000 home, that could mean $6,000 - $15,000 in closing costs. Want a full breakdown? Check out our closing cost guide.

Recurring Costs You’ll Face After Moving In

Your mortgage payment isn’t the only monthly bill. After moving in, be ready for:

• Mortgage + property taxes + homeowners insurance
• Private mortgage insurance (PMI) if you put down <20%
• HOA fees (if applicable)
• Utilities: electricity, water, trash, internet, gas
• Maintenance and repairs: even brand-new homes need upkeep

Experts suggest budgeting 1-3% of your home’s value annually for maintenance.

What to Know When Buying a House Beyond the Sticker Price

Some costs catch buyers off guard, like:

• Furniture and appliances (many homes don’t come with a fridge)
• Window treatments
• Lawn care, snow removal, or tools if you’re moving from an apartment
• Emergency savings: always have 3-6 months of expenses as a cushion

Don’t let these feel like surprise fees. They’re normal parts of settling in and building your new life.

How Foyer Helps You Budget for Your First Home

Foyer is built to help first-time buyers feel confident, not overwhelmed. With your free account, you get:

• Matched FHSA savings: Earn up to 6% in deposit matching
• 4.15% APY to grow your savings faster
• Homeownership Advisors who walk you through real costs step by step
• Interactive tools to model costs and timelines
• Milestone rewards that celebrate your progress

Whether you’re six months or two years away, Foyer helps you get ready without the guesswork.

Open Your FHSA Now

Helpful Resources and Tools

Get deeper insights:

• What You Need to Know About Buying a Home Under Foreclosure
• The Ultimate Guide to Buying Your First Home as a Freelancer
• First-Time Homebuyer’s Guide to Closing Costs

Buying a home doesn’t have to be full of surprises. With a realistic budget, helpful tools, and the right partner (hi, that’s us), you’ve got this.