BUYERS – The REAL Costs of Owning

Upfront Costs Before You Even Own the House

These are expenses most buyers hit before closing:

1. Home Inspection
Typically ranges from:

• $350–$700+
  Varies based on home size, age, and add-on tests (foundation, plumbing, pool, pests, etc. A separate fee for each needed inspection). You’ll pay this on each house you get under contract and is non-refundable.

2. Appraisal
Required by lenders:

• Usually $450–$750+
  This confirms the home’s value for the bank. You will only probably pay this once if you only progress on one contract, and the appraisal is good enough to not need to protest or get a 2nd one (if the lender allows)

3. Earnest Money

• Often 1% of the home’s price (can vary)
  This is applied toward your purchase at closing — not “lost” money.

Down Payment Expectations by Loan Type

(Estimates — lender rules vary. These are not guarantees.)

• FHA Loans: often 3.5% down

• Conventional Loans: often 3%–5% down (sometimes more)

• VA Loans: sometimes 0% down (if eligible)

• USDA Loans: sometimes 0% down (for eligible rural areas)

• Owner Finance: This will almost always be more expensive with higher interest rates, due to the risk factor this type of financing takes on your behalf.

Down payment assistance programs may be available, but qualification rules are strict.

Closing Costs in Texas (The Part No One Likes to Talk About)

Closing costs often include:

• Lender fees

• Title company fees

• Escrow setup

• Prepaid property taxes

• Prepaid homeowners insurance

Typical estimate:

• 2%–4% of purchase price (varies by county and loan)

In Texas, property taxes are collected in advance, which can be one of the biggest surprises. And they’ll change from year to year, which makes your MORTGAGE PAYMENT change, as well. Know how to protest your Homesteaded property taxes each year if needed.

After You Buy: The Ongoing Costs

This is what catches many buyers off guard:

Ongoing Monthly Living Costs (many apartments include these in rent)

• Electric & Gas payments

• Water & Sewer

• Trash collection
• Internet
• TV services

Property Taxes

• Texas does NOT have state income tax but higher property tax rates

• Local property taxes are higher than many states

• ISDs (school districts) have different rates and affect your tax percentage

• Can rise year to year (appeals are possible)

Homeowner’s Insurance

• Texas has higher-than-average insurance costs due to weather risk

• Premiums have become less predictable in recent years

• Some areas are seeing carriers restrict coverage or raise deductibles

• Changes in homeowner insurance costs WILL change your mortgage payments, as the lender collects this from you in that payment. Insurance goes up? Payment goes up.

Maintenance & Repairs
Even newer homes typically require:

• 1%–2% of the home’s value per year for upkeep

  • This could include HVAC maintenance, septic, plumbing, exterior care, yard care, accidental issues

Why I Share This (And Why I Care)

You are not “bad with money” if this feels overwhelming.
You are not “behind” if these numbers feel heavy.

The system has grown more complex and less transparent — and I believe my job is to make it clearer, calmer, and more human. I don’t want you regretting your journey into home ownership.

You deserve to buy a home with eyes wide open, without fear, and without shame.

And if you choose to work with me — that’s exactly how I’ll guide you.