Maintenance is the most underestimated cost of homeownership.
: A "good faith" deposit of 1% to 2% of the purchase price, paid when your offer is accepted. This is eventually credited toward your down payment.
: Includes origination (0.5%–1% of loan), underwriting ($300–$900), and credit reports (~$35).
: Lenders often require 6 to 12 months of property taxes and homeowners insurance paid upfront into an escrow account. Ongoing Monthly Expenses
: Budget 1% to 4% of your home’s total value annually for repairs and upkeep. For a $400,000 home, that is $4,000 to $16,000 per year .
These are the immediate expenses you must pay before you can get the keys.
: Your initial equity stake. While 20% is the gold standard to avoid extra fees, the average first-time buyer now puts down about 10% . Conventional loans : 3% to 5% minimum. FHA loans : 3.5% minimum. VA/USDA loans : 0% down for qualified buyers. Closing Costs : Typically 2% to 5% of the loan amount.
: Appraisal ($300–$1,000), home inspection ($300–$500), and title insurance ($300–$2,500+).