August 3, 2022 Buying

Cash on Hand: What are the costs of buying a home?

By Kate Barker

It’s easy to look at the purchase price of the home, realize you’re within your budget, and make an offer! But what other upfront costs are involved when you buy a home?

Lawyer Fees

A lawyer is a key player in buying a home, and they take care of the legal side of transferring property. You’ll have to pay for their time and any disbursements, which are fees they’ve covered on your behalf. These upfront costs are generally due at closing.

Property Insurance

You’ll need insurance to secure a mortgage, and this can be set up as monthly or yearly payments. The upfront costs to this can vary, depending on how you’re paying.


Like any time you move, you’ll have to transfer your utilities, and pay accordingly. There are some costs involved in changing things around, and you may find you use more utilities in your new home, especially if it’s larger than your previous place.

Home Inspection

While not necessary, it’s common and advised to get a home inspection so you know exactly what you’re facing when purchasing a home. You’ll pay upfront for this before actually purchasing the home.

Appraisal or Survey

Your mortgage lender may request an appraisal or property survey. These determine the market value of the home and the exact parameters of the property. These costs can fall on your shoulders and it’s best to be prepared with extra cash if necessary.

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