It’s easy to understand why most people see renting as money down the drain. After all, you’re handing over your hard-earned cash to a landlord who, in turn, owns the property. 

However, the reality is, when you decide to take the plunge into homeownership, your monthly mortgage payment is just the tip of the financial iceberg. There’s a slew of additional costs (phantom or not) that can catch you off guard, including property taxes, insurance, utilities, repairs, interests, and maintenance fees.

Sure, you might have crunched the numbers for that down payment, which can range from zero to a hefty 20% of the home’s purchase price. But have you factored in the often underestimated closing costs? These typically hover between 3% and 6% of your total loan amount, and they can pack a punch. 

And let’s not forget about the often-overlooked moving expenses. A local move might set you back around $1,500, but if you’re trekking cross-country, be prepared for a bill that could climb to $4,000. 

It’s crucial to consider these financial aspects before diving headfirst into buying your first home. While it can be a fantastic investment, being aware of these expenses will help you make an informed decision aligned with your financial goals.