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Don’t Forget These 3 Key Home Buying Costs


If you are planning to buy a new home in the near future, you are probably working hard to prepare a budget and determine how much you can afford before you start viewing homes. While it’s good to have an idea of the amount you can pay for a new house, many buyers routinely miss several key home buying costs. These costs can later cause a variety of problems if you have not budgeted for them. Before you start looking for your new home, make sure you add these three commonly forgotten costs into your budget.

  1. Title Insurance

Get critical protection against title claims.

Title insurance is something that most buyers forget about until closing, but it is a necessary form of protection for every soon-to-be homeowner. Title insurance provides you with protection against financial losses in the event that you later discover title defects. For example, title insurance can protect you from losses in situations where the seller does not actually own the home, where there is a lien on the property, or where a previous owner has accidentally omitted or deliberately falsified critical property records.

In a standard real estate contract, the seller will pay for the buyer’s title insurance, but in most states, the buyer is also required to buy title insurance in order to protect the mortgage lender as well. Title insurance to protect lenders usually costs, on average, $2.50 per $1,000 of the assessed property value.

  1. Unexpected Renovations

Home inspectors aren’t perfect.

Typically, your home inspector will alert you to any issues requiring renovation or repair before you buy your new home. But if your home inspector is negligent and misses a critical problem with the home, you may need to come up with money in order to cover surprise renovations — and fast.

While you can file an insurance claim or sue the inspector for negligence in order to recoup any damages, court cases and insurance claims take time – time that you may not have if you are facing an urgent home problem. Most real estate agents suggest budgeting 1 percent of your home’s budget each year for maintenance costs.

  1. Initial Interest

Your first month’s interest comes due fast.

Your mortgage starts accruing interest on the day you close the home sale, not on the day you move in. That means if you sign the contract on March 15, you will need to make an interest payment for the period of time lasting from March 15 to March 31. Your payment will then come due on April 1 — so always be sure to include your first interest payment in your closing costs.

When you have a clear understanding of the various costs involved in buying a home, it is easier to plan your home purchase and budget for the expenses that come with it, both expected and unexpected. Contact Amy Buynoski today to learn more about home buying costs at

Bonus: Get Your “Docs” in A Row

Wealth management firm Blue Clover Financial’s top tips to keep your legal and financial documents safe during a move.

  1. Gather all necessary documents. Make a digital copy of all important documents, including wills and medical directives. Keep in mind: safety deposit boxes are in banks, which are not always open when you might need access to your documents. Engage a financial advisor who has access to a secure online vault to safely store what you need to.
  2. Get advice for tips on moving your money from a financial advisor. When changing new companies, one option is to establish your own IRA. This type of account allows you to individually invest in the financial vehicles of your choosing. A big move is a major life change, making it the perfect time to review your portfolio to ensure that it matches your desired financial goals.
  3. Prepare an estate plan. Protect your family for the future by taking time to update your plan after your move. Each state as slightly different laws, so you want to make sure that your documents comply with Georgia’s laws.
  4. Engage additional business resources. If you own your own business, it’s important to have a trusted local team who is familiar with the Atlanta business landscape. Our city has many accountants, insurance agents and financial planners that specialize in helping small businesses, so do your research and choose professionals that align with your business mission and goals.

Blue Clover Financial is an Atlanta-based wealth management firm that helps clients identify and implement solutions to integrate all aspects of their financial lives. To learn more, visit