You’ve been saving for a down payment, checking out homes, maybe even picturing where the furniture will go—but as you get deeper into the home buying process, you realize something: there are a lot of expenses no one warned you about.
These aren’t exactly “hidden” costs—they’re just not talked about enough. Let’s pull back the curtain and talk about what really goes into the price of buying a home.
Closing Costs
Most buyers are prepared for the down payment, but closing costs often come as a surprise. These typically range from 2% to 5% of the home’s purchase price. On a $250,000 home, that could mean anywhere from $5,000 to $12,500 due at closing. Closing costs include lender fees, title insurance, appraisal fees, escrow fees, and more. They’re all necessary to legally and financially transfer the property to you. The earlier you know about them, the better you can plan.
Inspections and Pre-Move Expenses
Even if a home looks great, inspections are essential. A general home inspection typically costs $300 to $600, but depending on the property, OR the type of loan, you might also need a pest inspection, roof check, foundation or sewer review. On top of that, there can be application fees, credit report charges, and even a property survey, depending on the area and lender requirements. These are upfront costs that don’t roll into your mortgage—so you’ll need cash on hand to cover them.
Property Taxes
Monthly mortgage payments are only part of the picture. Property taxes vary by location, and in Texas, they can be higher than expected. Many buyers underestimate how much this impacts their budget, especially if property values increase. It’s crucial to look at a property’s tax history before making an offer and ask about any potential increases. What seems like an affordable monthly payment can jump significantly once taxes are included.
Insurance (and Sometimes Flood Insurance)
Homeowners insurance is a must—and your lender will require it—but that’s not the only policy you may need. If your new home is in a flood zone, you’ll also need flood insurance, which can cost significantly more. Before closing, request quotes from different insurers and make sure you understand what’s covered. Insurance is one of those “non-negotiables” that can catch buyers off guard if they don’t prepare early.
Homeowners Association (HOA) Fees
If you’re buying in a neighborhood with an HOA, don’t forget to factor in monthly or annual dues. Fees can range from minor (just a few hundred dollars a year) to substantial, depending on the community and its amenities. What’s included also varies. Some HOAs cover landscaping, pools, or community security. Others might just enforce rules on exterior paint colors and front yard appearances. Either way, it’s an added cost you’ll want to consider.
Moving, Repairs, and New Furnishings
Once the keys are in your hand, the spending doesn’t stop. Even in move-in-ready homes, buyers often find themselves replacing blinds, painting walls, or hiring cleaners. And if you’re upgrading in size, you’ll likely need more furniture or appliances. These expenses can add up quickly—especially when you’re eager to make the place your own.
Utility Setups and Deposits
New home, new utility accounts. That means deposits for electricity, gas, water and trash pickup. Some companies may require upfront payments, especially for first-time homeowners or if you’re moving from out of state. Don’t forget installation costs for internet, cable, or home security systems. These might be small individually, but together they create a noticeable dent in your post-closing budget.
Now that you’re aware of these not-so-hidden costs, you’re already a step ahead of most buyers. Being informed means you can plan smarter, budget better, and walk into your new home without unexpected financial stress. The key to a smooth experience is knowing what to expect—and having a real estate expert who makes sure nothing catches you off guard.
If you’re buying in El Paso and want someone who’ll guide you through every part of the process, I’ve got your back.
