Closing costs
Before the purchase is final, you’ll need to deal with closing costs. These include miscellaneous fees for attorneys, titles, surveys, inspections and more. Typically, they range from 2 – 3% of the price of the home, and aren’t included in your down payment.
Mortgage and/or homeowners’ insurance
Homeowners’ insurance covers you in case anything should happen to your property. It’s important to note that natural disaster coverage typically isn’t included in insurance plans. But depending on where you live, you may want to add flood or earthquake coverage for peace of mind.
Additionally, if your down payment is less than 20% of the home’s value, your lender will probably require you to purchase mortgage insurance. This way, it stays protected in case you default on your loan.
