You’ve saved your down payment. You’re pre-approved. You found your dream home in Texas. But before you sign on the dotted line, there’s something most first-time buyers don’t realize: the down payment is just the beginning.

From closing costs to moving expenses to that first emergency repair, buying a home comes with dozens of “hidden” costs that catch buyers off guard. In this guide, I’ll break down every expense you should budget for—so there are no surprises on closing day or move-in week.

Before Closing: Upfront Costs

These expenses happen before you ever get the keys:

Closing Costs: The Big One

Closing costs in Texas typically range from 2-5% of the loan amount. On a $300,000 mortgage, that’s $6,000-$15,000. Here’s what’s included:

Closing Cost Item	Typical Range
Loan Origination Fee	0.5-1% of loan
Title Insurance (Owner’s + Lender’s)	$1,500 – $3,000
Title Search & Examination	$200 – $400
Attorney/Settlement Fee	$500 – $1,000
Recording Fees	$100 – $250
Survey (if required)	$400 – $700
Credit Report Fee	$30 – $50
Flood Certification	$15 – $25

Prepaid Items (Collected at Closing)

These aren’t technically “costs”—they’re expenses you’d pay anyway—but you need the cash at closing:

Moving Day Costs

Don’t forget—you have to actually move into your new home:

First Month of Homeownership

The expenses don’t stop once you have the keys:

Ongoing Costs (Often Underestimated)

Your monthly housing costs include more than just principal and interest:

Monthly Expense	Typical Range (Texas)
Property Taxes (monthly escrow)	$400 – $800
Homeowners Insurance (monthly escrow)	$150 – $350
PMI (if applicable)	$100 – $300
HOA Dues (if applicable)	$50 – $400
Maintenance Reserve (1% of home value/year)	$250 – $400
Lawn Care (if not DIY)	$100 – $200
Higher Utilities (larger space)	$50 – $200 more

Emergency Fund: Expect the Unexpected

Things break. It’s not if, it’s when. Here are common first-year surprises:

• HVAC repair/replacement: $300 – $10,000+
• Water heater replacement: $1,000 – $3,000
• Roof repair: $300 – $1,500 (full replacement: $8,000-$20,000)
• Plumbing issues: $150 – $3,000
• Appliance replacement: $500 – $2,500 each
• Foundation issues (common in Texas clay soil): $5,000 – $15,000+

Complete Budget Checklist

Use this checklist to make sure you’ve budgeted for everything:

How to Reduce These Costs

Feeling overwhelmed? Here are strategies to minimize out-of-pocket expenses:

1. Negotiate seller concessions: Ask the seller to pay 2-3% toward your closing costs (common in buyer’s markets)
2. Use down payment assistance: Texas programs like TDHCA and TSAHC can provide grants and forgivable loans
3. Compare lender fees: Origination fees and other lender costs vary significantly—shop around
4. Close late in the month: Less prepaid interest due at closing
5. Ask for home warranty: Negotiate for the seller to provide a 1-year home warranty covering major systems
6. DIY what you can: Moving, painting, and basic repairs can save thousands

The Bottom Line

Buying a home is one of the biggest financial decisions you’ll make. The down payment gets all the attention, but it’s the “hidden” costs that derail budgets and cause stress.

My advice: Save more than you think you need. It’s better to have cash left over than to max out credit cards furnishing your new home or facing an emergency repair.

When we work together on your pre-approval, I’ll give you a detailed estimate of your specific closing costs—no surprises. And I’ll help you explore options like seller concessions and down payment assistance to keep more cash in your pocket.