The Real Cost of Buying a Home: Beyond the Price Tag

When you’re ready to buy a home—whether it’s in Jasper, Evansville, or anywhere in Dubois County—it’s easy to focus only on the listing price. But the actual cost of buying a home goes far beyond the price tag. From closing fees to inspections, insurance, and property taxes, there are several other costs you’ll need to plan for.

This guide explains the following:

• Closing costs you should expect

• How your down payment fits into the total cost

• Prepaid expenses like taxes and insurance

• Home inspections, appraisals, and other upfront costs

• Moving expenses and post-move necessities

Here’s a closer look at each.

Closing Costs You Should Expect

Closing costs are the collection of fees and charges you’ll pay at the end of the buying process—right before the home becomes yours. These typically total 2% to 5% of the home’s purchase price and include:

• Loan origination fees

• Title insurance and title search fees

• Appraisal and credit report fees

• Escrow fees

• Attorney fees (if applicable)

• Recording fees

On a $250,000 home, closing costs can range from $5,000 to $12,500. Your lender will provide a Loan Estimate early in the process and a Closing Disclosure shortly before closing to outline all your final costs.

How Your Down Payment Fits Into The Total Cost

Your down payment is usually the largest upfront cost. The amount depends on your loan type:

• Conventional loans: Minimum 3% down

• FHA loans: Minimum 3.5% down

• VA and USDA loans: 0% down (for qualified buyers)

Putting down 20% or more can help you avoid mortgage insurance and lower your monthly payment, but it’s not required. Many buyers in places like Huntingburg or Ferdinand choose to put down less and keep more cash available for other expenses.

Prepaid Expenses Like Taxes And Insurance

At closing, you’ll also need to pay prepaid items—costs that cover things like homeowners insurance and property taxes in advance. These go into your escrow account, which your lender uses to pay your bills when they come due.

Typical prepaid expenses include:

• Homeowners insurance: Usually the first year is paid upfront

• Property taxes: You may need to prepay 6 to 12 months

• Prepaid interest: Covers the time between your closing date and the end of the month

If you’re not sure how much to budget, your REALTOR® and lender can estimate based on local rates or help you find info through IN.gov.

Home Inspections, Appraisals, And Other Upfront Costs

Some of the most important costs in the homebuying process happen before you close:

• Home inspection: $300–$600, depending on size and location

• Appraisal: Usually $400–$700

• Pest inspection: May be required depending on loan type

• Septic or well inspections: Required for some rural properties

• Radon or mold testing: Optional but recommended in some cases

These are out-of-pocket costs and usually not refundable. Even if the sale falls through, you’ll still have to pay for these services.

Moving Expenses And Post-Move Necessities

Once you close on the home, your spending isn’t over. Here are some additional expenses to consider:

• Moving costs: Whether you hire professionals or rent a truck, moving isn’t free

• Utility setup: You may have to pay deposits to start service

• Appliances: Some homes—especially in areas like Newburgh—don’t include washers, dryers, or refrigerators

• Furniture and home essentials: Budget for curtains, tools, shelves, and other necessities

• Repairs and upgrades: Even move-in-ready homes often need some customization or minor fixes

If you’re buying in Santa Claus or another unique community, ask your REALTOR about typical costs and expectations in that area.

FAQ About The Real Cost Of Buying A Home

Check out these commonly asked questions about the real cost of buying a home. If you don’t see your question here, please call our office and we’ll find you the answers you need.

What’s The Difference Between Closing Costs And A Down Payment?

Your down payment goes toward the purchase price of the home. Closing costs are fees paid to lenders, title companies, and other service providers during the transaction.

Can I Roll Closing Costs Into My Mortgage?

Sometimes, yes. If allowed by your lender and loan program, you may be able to finance some or all of your closing costs. Your monthly payment will go up, but you’ll pay less upfront.

Do First-Time Buyers Get Any Help With Costs?

Yes. Indiana offers first-time homebuyer programs that may help with down payments or closing costs. You can check IN.gov or talk to your lender or REALTOR for more details.

What If I Don’t Have Enough Cash For All These Costs?

Talk to your lender. You may qualify for grants, assistance programs, or a loan that requires a lower down payment. You can also ask your REALTOR about negotiating for seller-paid closing costs.

Are All These Costs The Same No Matter Where I Buy?

No. Costs can vary based on your location, loan type, and even the time of year. Property taxes, insurance rates, and service fees differ from town to town, so working with a local real estate agent is important.

The price you see on the listing isn’t the full story. The true cost of buying a home includes everything from inspections and taxes to insurance and moving expenses. With the help of a skilled REALTOR and a trusted lender, you can get a full picture of what to expect—and budget accordingly—so you’re ready for a smooth and successful home purchase in Dubois County and beyond.