Hidden Costs for Missouri Homebuyers

Missouri Homebuyers

Like everything else these days, the cost of homeownership is going up. While most of us know that homes are getting more expensive, few realize that the sale price isn’t all they have to pay. Here, we uncover some of the hidden costs of a home purchase.

Appraisal Fees

Mortgage lenders require buyers to pay for home appraisals. Your real estate agent will recommend that you schedule an appraisal early so you’ll have the most accurate assessment of the home’s value. Home appraisers evaluate a home’s physical condition to determine its value, looking for structural issues and safety hazards. The average home appraisal costs several hundred dollars, but it’s a necessary investment.


While inspection fees are another cost to consider, they can save buyers thousands in the long term. Home inspections reveal underlying issues, and buyers can then negotiate with sellers to have them lower the asking price or solve the problems. Whether the results are good or bad, a home inspection allows the buyer to know when to hold and when to fold.

Missouri Homebuyers

Origination Fees

Some home lenders charge origination fees to set up mortgages. Each lender’s process is different, but origination fees are typically based on a percentage of the loan amount. If your lender doesn’t charge an origination fee, look at the interest rate. In many cases, lenders who don’t charge the fee make up for it with higher interest.

Closing Costs

When closing time comes around, you’ll have to pay fees to finalize the transaction. Closing costs may include:

  • Closing and/or escrow fees
  • Appraisal fees
  • Mortgage points
  • Private mortgage insurance
  • Title search fees
  • Miscellaneous costs (such as having closing documents reviewed by a real estate lawyer)

While these costs vary, most Missouri homebuyers can expect to pay up to five percent of the loan amount.

Relocation Costs

If you thought it was finally time to close your checkbook, it’s not. Once you’ve closed on your new home, it’s time to get moving. Relocation can be expensive, especially for those who hire movers. As you’re planning the purchase, leave some room in the budget for moving supplies, time away from work, and renting equipment.

Utility Deposits

Before buying a home near St. Joseph, you’ll need to budget for utilities like gas, water, cable TV, internet, and electricity. Most providers require deposits on new accounts, and those costs can add up quickly.


Mortgage lenders require buyers to have homeowner’s insurance before closing. Even if you buy a home outright, a homeowner’s policy will cover costs associated with property damage, theft, injuries, and major repairs.

HOA Fees

Homes located in planned communities come with monthly or yearly HOA fees. Homeowner’s association fees cover the costs of common area repairs, maintenance of amenities, landscaping, and more. The extent of HOA fees depends on the community, and the only sure way to avoid them is to buy a house in a non-HOA neighborhood.

Consider the Costs and Plan Wisely

The cost of homeownership is high, but it’s worthwhile. By learning about and budgeting for the hidden costs of a home purchase, you can avoid emotional and financial stress.