Buying a home is a big milestone – and an exciting one! But beyond the monthly mortgage payment, there are a number of costs that can catch even the most prepared buyer off guard.
Did you know, the average cost of owning and maintaining a single-family home in the U.S. now averages more than $21,000 each year, according to a recent study from Bankrate? Unexpected costs are an “when,” not a “if.” So, when something breaks or needs repaired, it’s important to be prepared to address it. More than 83% of homeowners had to deal with unexpected repairs in 2024. It’s safe to assume you’ll deal with them, too.
Let’s break down the top hidden costs based on where you are in your homebuying journey.
Before you even step foot into your new home, there are some key costs to know about – ones that don’t always make the standard checklist.
You’ll likely need to pay for things like a home inspection, an appraisal, and a deposit to show the seller you’re serious (called “earnest money”) about purchasing their home.
Once you’re ready to close on your home, some of the biggest one-time expenses start to surface. Closing costs are often underestimated, but they’re crucial to factor into your budget. These can add up quickly and usually require you to have the money available via cashier’s check or wire transfer. To get a rough estimate of how much you’ll pay in closing costs, use a closing cost calculator – you’ll need to enter the county your home’s located in, home purchase price, and down payment amount to receive an estimated closing cost range. Closing costs typically include things like lender fees, title insurance, recording fees, and transfer fees. You’ll also need to secure homeowners insurance, which PSECU Protect, LLC1 can help you out with!
You’ve got the keys, and the moving truck has pulled away – but there’s still new expenses waiting to greet you. Rekeying locks, installing blinds, and purchasing appliances that weren’t included in the home’s sale, are typically on a new homeowner’s to-do list. And while small, those initial home maintenance tasks – like HVAC servicing, gutter cleaning, and pest prevention can add up fast.
Furnishing your place is another hidden cost to consider. Whether you’re moving into your first home or upgrading to more square footage, filling up those extra rooms is another expense that’s smart to plan for.
Once you’re settled in, the biggest hidden costs tend to appear over time. Maybe your HVAC starts making strange noises or your roof starts to leak. These long-term maintenance needs are a normal part of owning a home, but they’re also why it’s important save for the unexpected. It’s not about expecting the worst – it’s about being prepared for what tomorrow may bring.
The path to owning a home will likely present a few surprise expenses along the way. But when you understand what’s ahead, you can budget smarter, stress less, and enjoy your space even more.
Whether you’re preparing to buy or are already a proud homeowner, we’re here to help. Explore our Resource Center for more tips and tricks on navigating homeownership.
1Not all products, coverages and discounts are available in every state. Restrictions, exclusions, limits and conditions apply.
Insurance products are offered by PSECU Protect, LLC an affiliate of Pennsylvania State Employees Credit Union (PSECU). Available insurance products are not deposits of Pennsylvania State Employees Credit Union and are not protected by any type of deposit insurance, are not obligations of or guaranteed by Pennsylvania State Employees Credit Union or its affiliates, and may be subject to risk. Insurance products are not insured or guaranteed by the National Credit Union Administration (NCUA) or any other agency of the United States. Any insurance required as a condition of the extension of credit by Pennsylvania State Employees Credit Union need not be purchased from our Agency, PSECU Protect, LLC, but may, without affecting the approval of the application for an extension of credit, be purchased from an agent or insurance company of the customer's choice.
2Additional options for first-time homebuyer products/terms available. PMI may be required. Contact one of our mortgage originators to find out which one is right for you.