Costs of Buying a Home
Buying a home involves more than the purchase price and monthly mortgage payment. The Peterson Group helps buyers throughout West Volusia and Seminole County understand the upfront expenses, ongoing costs, and transaction fees that can affect the real cost of buying a home.
The Purchase Price Is Only Part of the Cost
Before you start comparing homes, it helps to understand which costs happen before closing, which are paid at closing, and which continue after you own the home.
01
Before Closing
Escrow deposit, inspections, appraisal and other due-diligence expenses.
02
At Closing
Down payment, lender costs, title-related charges, prepaid expenses and other closing costs.
03
After Closing
Mortgage payment, property taxes, homeowners insurance, HOA fees when applicable, utilities and ongoing maintenance.
Costs You May Pay Before Closing
01
Escrow Deposit
Money delivered after your offer is accepted to show your intent to move forward. The amount and deadline are negotiated with the offer and are typically credited toward the transaction at closing.
02
Home Inspections
Buyers may choose inspections based on the property, including general home, WDO, four-point, wind mitigation, pool, or septic inspections. These are typically paid during the due-diligence period.
03
Appraisal
When financing a purchase, the lender may order an appraisal to evaluate the property for the loan. This is typically a buyer expense and may be collected before the appraisal is completed.
What You May Pay At Closing
Closing is when many of the largest upfront costs come together. The exact amount depends on your financing, contract terms, property, lender, insurance, and other details of the purchase.
The portion of the purchase price you pay with your own funds. The amount required depends on your loan program and financial strategy.
Down Payment
DOWN
Your mortgage may include lender fees, loan origination charges, discount points, credit-related costs, and other financing expenses.
Loan & Lender Costs
LOAN
Some costs may be collected in advance at closing, including homeowners insurance, property taxes, prepaid interest, and money used to establish an escrow account when required.
Prepaid Expenses
PREPAID
The transaction may also include title-related charges, settlement fees, recording costs, survey expenses, and other items depending on the property and contract.
Title, Settlement & Other Closing Costs
CLOSING
Your lender and closing professionals will provide detailed estimates for your specific purchase. We help you understand how those numbers fit into the overall cost of the move.
Costs That Continue After Closing
The cost of owning a home continues after closing. Understanding the recurring expenses helps you compare homes based on the full monthly picture, not just the mortgage payment.
Mortgage Payment
Your principal and interest payment will usually make up the largest portion of your monthly housing cost.
Homeowners Insurance
Insurance costs can vary significantly based on the home, location, roof age, construction features, coverage, and current insurance market.
Property Taxes
Property taxes vary by location and property value and may be included in your monthly escrow payment depending on your loan.
HOA, Utilities & Maintenance
Depending on the property, ongoing costs may also include HOA or community fees, utilities, lawn or pool care, repairs, and routine maintenance.
Two homes with the same purchase price can have very different monthly ownership costs. We help buyers compare those differences before they make a decision.
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How Much Cash Should You Plan For?
The amount you need to buy a home is not just your down payment. Your total cash plan can also include closing costs, prepaid expenses, inspections, appraisal fees, and money you want to keep available after closing.
Down Payment
Money applied toward the purchase price.
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Closing Costs & Prepaids
Loan costs, prepaid taxes, insurance, escrow funding, and other closing expenses.
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Inspections & Appraisal
Due-diligence expenses that may be paid before closing.
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Moving & Reserves
Moving expenses and money you want available after the purchase.
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Your Total Cash Plan
The full amount you should plan around before purchasing.
Want to Know What Buying Could Look Like for You?
Every buyer’s numbers are different. Your loan, down payment, insurance, taxes, property type, and contract terms all affect the real cost of buying a home.
We’ll help you understand the costs before you start making offers.