🏡 The Real Cost of Buying a Home: Hidden Fees to Know

Buying a home is one of the most exciting — and expensive — decisions you'll make. While most buyers focus on the down payment and monthly mortgage, many are surprised by the hidden costs that come with closing the deal. If you're planning to buy a home in St. Louis or anywhere else, here are the lesser-known fees you should be prepared for.

1. Closing Costs

These are the most significant hidden expenses, typically ranging from 2% to 5% of the home’s purchase price. They include:

• Loan origination fees

• Appraisal fees

• Title search and insurance

• Attorney fees (in some states)

• Recording fees

Always ask your lender for a Loan Estimate to see a breakdown early on.

2. Home Inspection Fees

Before you buy, you'll want a professional inspection — and that usually costs between $300 to $600, depending on the size and age of the home. If you add on termite, radon, or sewer inspections, those can cost extra but are often well worth it.

3. Property Taxes

Depending on when you close, you may have to prepay a portion of your annual property taxes. These vary by location, so ask your agent for an estimate based on the area.

4. Homeowners Insurance & Escrow

Lenders often require you to prepay your first year of homeowners insurance, and sometimes several months of taxes and insurance into an escrow account. That can be another $1,000–$2,500+ upfront, depending on the home and coverage level.

5. Private Mortgage Insurance (PMI)

If your down payment is less than 20%, you’ll likely have to pay PMI. This can range from 0.3% to 1.5% of the original loan amount per year, adding up to hundreds per month.

6. HOA Fees

Buying in a neighborhood with a homeowners association? Expect monthly, quarterly, or annual HOA dues, which could range from $100 to $500+ per month, depending on amenities and location.

7. Moving & Utility Setup Costs

Don’t forget the cost of moving trucks, deposits for water, electric, gas, internet, and even furniture or appliances if your new home doesn’t come with them.

💡 Final Thought:

The price on the listing isn’t the full picture. As your local real estate experts in St. Louis, we're here to guide you through every part of the process — including the parts that can catch buyers off guard.

Thinking about buying? Let’s talk about your budget and break down the numbers together.