Dated: 06/15/2017

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Budgeting for buying a home can be difficult enough when you're just weighing mortgage options and a purchase price. But there are many other factors that go into the cost of home ownership. Some of them are one-time expenses that you'll pay during the home buying process, while others will be recurring costs for as long as you own the home.

Closing Costs

There are several smaller fees that add up to a rather large sum when you're going through the closing process-loan fees, attorney fees, underwriting fees, and more. They typically add up to 2-5% of the purchase price. Not including your downpayment, budget an additional $5,000 for a $300,000 home around the Triangle.


Your lender will require an appraisal, and the appraisal fee (a few hundred dollars) comes out of your pocket. If you're paying cash then it's up to you (but strongly recommended).


The few hundred dollars you'll pay for a home inspection is money well spent, but it's something you have to keep in mind during the purchase process. You'll have the peace of mind of knowing the house is free from any major issues, and you're making a smart, solid investment.  This isn't required but would you buy a car without taking it out for a spin?


Although homeowners insurance isn't legally required, it'll almost certainly be required by your lender. Further insurance, such as flood insurance, may also be required if you live in an area that's prone to flooding.

Home Owners Association

If you're living in a property or community with shared spaces, you'll almost certainly have an HOA fee. This pays for things like trash removal, maintenance of common areas, and for recreational facilities like gyms and swimming pools.  Unlike home-owner's insurance, this isn't paid with your mortgage, but it's usually paid either directly to the HOA or management company.  Be sure you pay it!  If you get behind the association can place a lien on your property and that's a dirty word in real estate.

Michael Cunningham

Michael Cunningham is a Real Estate Broker as well as the go-to tech and marketing wiz at Domicile Realty. A native of Tennessee, Michael arrived in Chapel Hill by way of Washington, DC where he help....

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