So you’ve crunched the numbers, gotten pre-approved, and found your dream home. You’re ready to buy… right?
Not so fast.
Owning a home comes with costs most buyers don’t see coming—and if you’re not prepared, those hidden expenses can sneak up fast. From surprise repairs to ongoing fees, being aware of these costs upfront can save you major headaches (and dollars) down the line.
Here’s a breakdown of what to budget for beyond the mortgage payment.
1. Property Taxes Aren’t Set in Stone
Your lender may give you an estimate—but local property taxes can change, especially in neighborhoods with rising home values or upcoming assessments.
Tip: Check Cook County’s property tax portal or ask your agent for historical trends in your zip code.
2. Homeowners Insurance Can Vary Wildly
Your lender requires insurance, but your location, property type, and coverage limits affect the cost. Older homes or ones near the lakefront may carry higher premiums.
Don’t just go with the cheapest policy—make sure it covers what you need.
3. Maintenance Adds Up (Even If Nothing Breaks)
Even in a newer home, you’ll need to budget for:
- HVAC servicing
- Gutter cleaning
- Lawn care or snow removal
- Small fixes and seasonal upkeep
A good rule of thumb: Save 1% of your home’s value per year for upkeep.
4. Utilities Might Be Higher Than You Expect
Going from a one-bedroom apartment to a 3-bed home? Expect your gas, electric, and water bills to climb. Age, insulation, and square footage all play a role.
Ask the seller or your agent for past averages to get a better estimate before closing.
5. HOA Fees Are More Than Just a Line Item
If you’re buying a condo or townhome, your Homeowners Association (HOA) dues might include:
- Common area maintenance
- Trash, recycling, or water
- Building insurance
- Capital reserves for repairs
Also ask: How often do fees increase? Are there any special assessments coming up?
6. Unexpected Repairs Are Inevitable
Even with a clean inspection, things can (and will) go wrong:
- Leaky roofs
- Appliance breakdowns
- Plumbing issues
- Electrical surprises
Consider a home warranty in year one to cushion the cost of early surprises.
Bottom Line: Budget Beyond the Mortgage
The cost of owning a home goes far beyond your monthly payment. But that doesn’t mean you should be afraid—it just means you should be informed and prepared.
Ready to start your homeownership journey the smart way? Let’s talk. We’ll walk you through all the real numbers—so nothing catches you off guard.
