Beyond the mortgage: Common homeownership costs after buying a home

Typical upfront costs

Moving fees

First things first—it’s time to move in. If you hire professional movers or rent a moving truck, you’ll need to cover those costs. Even if family and friends are helping you move, make sure to plan for packing materials like boxes and tape. You may also need temporary storage for your furniture and belongings before moving into your new home, whether that’s a storage unit or a loved one’s garage.

Furnishing your home

With a new home, you may want to update your furniture or buy additional pieces if you have more space now. Most Clayton homes come standard with appliances like a fridge and stove, but this may be the perfect time to upgrade your washing machine and dryer set or get that sectional you’ve been eyeing. If your new home has a front porch, you might also plan for patio furniture, a porch swing, or rocking chairs. You may even want to redecorate with different curtains, rugs, and décor, so it’s helpful to plan for those updates.

Additions to the property

You may want to make additions to your property shortly after moving in or down the line. Features like a swimming pool, fence, or shed can come with upfront costs. And when making any additions to your home, like a patio, deck, or carport, don’t forget to check for any required permits and review your HOA guidelines, if applicable. We also recommend using licensed professionals to build or install those additions. You may also need to notify your homeowners insurance provider and make updates to your policy as needed, especially for installing features like a pool on your property.

Landscaping

If you’re having your new home placed on private land, your yard may need some landscaping, like planting grass or adding flower beds, once your home is set up. And if you’re moving from an apartment to a home with a lawn, don’t forget about the costs of ongoing yard maintenance. You may need to set aside money for a lawn servicing company or tools like a mower or leaf blower to tend to the lawn yourself. And if you’re looking to plant trees or a garden, you may need to hire a landscaping company or plan to purchase materials and tools for those as well.

Ongoing costs

Homeowners Insurance

Home insurance, also known as hazard insurance, is designed to protect you from losses and damage to your property caused by perils, which are exposures to dangers or threats. Depending on your insurance provider, these perils can include events such as fire, burglary, or burst pipes. Most mortgage lenders require you to have home insurance before closing and generally require proof that your policy is active. It’s an important part of protecting your home.

Private Mortgage Insurance

Depending on your lender and loan type, private mortgage insurance, also called PMI, may be required if your down payment is less than 20% of the purchase price of the home.

Property Taxes

In the United States, property taxes are paid by property owners to local governments and are typically based on the value of the property. Generally, if you own both the land your home is on and the home itself, you’ll be responsible for paying property taxes associated with your property.

If your home will be located on land you own, your chosen lender may offer or require an escrow account to cover property taxes. This means you’ll make payments toward your taxes as part of your monthly mortgage, rather than paying a large amount all at once. Your lender is then responsible for paying the property taxes from the escrow account when they’re due. For modern manufactured homes that aren’t permanently attached to the land, your lender may still require an escrow account for the personal property tax on the home itself.

Escrow

Mortgage escrow is a process where additional funds are collected with your monthly mortgage payments to cover other expenses associated with homeownership. This additional money is set aside by your mortgage servicer and used to pay costs like property taxes, homeowners insurance, and, if applicable, flood insurance. This helps spread out these expenses so you don’t have to scramble to pay a large tax bill or insurance premium all at once.

Utilities and Maintenance

As the homeowner, you’re responsible for paying for utilities and any needed maintenance. This can include services such as water, electric, gas, sewer, internet, phone, trash and recycling, cable or streaming subscriptions, pest prevention treatments, outdoor and indoor cleaning, and home security.

Homeowners Association Fees

If your home is located in an HOA residential community or neighborhood, you may pay monthly or annual fees for access to and upkeep of shared amenities and services. These can include a pool, community clubhouse, dog park, playground, fitness center, lawn care and landscaping, on-site security, parking, and more.

We hope this guide helps you feel more prepared for the costs to expect after closing and moving into your new home. At Clayton, we know home buying is a big decision that can change your life, which is why we strive to give you the information and answers you need to be ready. To explore more information about the home buying process, you can get started with our Learning & support page and FAQs.