But the down payment and the mortgage aren’t the only costs to prepare for when purchasing a new home.
There are a mountain of hidden expenses – from maintenance fees to taxes – that can add up to more than $9,000 each year, real estate marketplace Zillow estimates. And closing costs alone can tack an additional 5% onto the initial price of the home.
Business Insider previously spoke to Zillow’s chief economist, Svenja Gudell, about the three big unavoidable costs – homeowners’ insurance, property taxes, and utilities – and other common costs that are often overlooked.
If you’re considering buying a home, be mindful of these expenses when establishing your budget, Gudell says.
Kathleen Elkins and Dylan Roach contributed to a previous version of this article.
- Skye Gould/Business Insider