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How Much Should You Budget For Expenses After Closing?

After saving for a down payment and closing costs, you’ll need to budget for the other expenses that come with moving to a new home. The costs to move, furnish a new home, and repair or alter a property are all things to be aware of & budget for ahead of time. 

But first, what are closing costs and how can you budget for them?

Budgeting For Closing Costs

Closing costs are the costs associated with buying a home. These costs can vary depending on the lender you choose, the loan type, and property & transfer taxes. Closing costs are typically about 2% to 7% of the purchase price of your home.

Some of the fees you may be expected to pay in closing costs are:

  • Application fee – This covers the costs of the loan application process & can vary depending on your lender.
  • Mortgage broker fee – Closing costs can include a commission fee that mortgage brokers charge at the end of the process. 
  • Property tax – This is paid to the county treasurer and can vary by state.
  • Homeowner’s insurance – Some lenders may require the buyer to purchase homeowner’s insurance before closing on the home

Ask a REALTOR® for recommendations on mortgage brokers & programs that may be a good fit for you. 

Expenses to Budget For After Closing

When you’re shopping for a home, you may find options at the top end of your budget that you can technically afford. However, you don’t want to be stressed about covering the costs of things that come after the initial down payment & closing costs. 

Here are some expenditures to think about:

Moving Expenses

Moving expenses can vary widely – especially depending on how much you’re going to do yourself. 

On average, a professional mover can cost between $300 – $1,500 for a local move depending on the size of the home and how much stuff you have to move. A do-it-yourself move can get expensive quickly once you factor in the price of gas, boxes, and the cost to rent a moving truck (if you need to). 

If you need to rent a temporary storage unit during the moving process, that can be an additional cost that may last longer than a month (if you keep the unit for longer than a month). 


The cost of your monthly utility bills will depend on the location & size of your home as well as the number of occupants. According to, the average cost for monthly services across all 50 states is $398.24. That includes electricity, natural gas, water, cable tv, internet, and trash/recycling.

Household items

Between shower curtains, window blinds, lightbulbs, mailbox stickers, and other similar items, you may be surprised at how much various household items can total to. As you’re packing to move to your new home, think about the items that you aren’t taking with you. Use that as a guide to estimate how much to budget for those items in your new home. 

Once you move in, you may realize you need other items that you didn’t notice before. For example, if you had carpet in your old home but now have hardwood floors in your new home, you may have to buy a different vacuum cleaner that’s made for hard surfaces.

If you’re not moving all of your appliances or furnishings with you, you may also incur some bigger expenses for those items. According to a report by the National Association of Home Builders, home buyers spend between $2,008 and $3,037 on appliances and between $2,811 and $4,245 on furniture in the first year of homeownership. Household items can sometimes be a bigger expense for first time home buyers who are starting from scratch.

Property Repairs or Alterations

You’ll want to set money aside if the home you’re buying needs repairs or alterations. New flooring, roofing, landscaping, cabinetry, and even wall paint can add up fast. 

Cosmetic things, like paint or landscaping, don’t have to be replaced right away. Repairs that need to be made to the home should probably be taken care of before you move in. Weigh out the things that are urgent to take care of versus the things that you can budget for later on.

Ask your REALTOR® if things like roof repairs, HVAC repairs, or other vital repairs to the home can be negotiated with the seller. They may be able to negotiate some of those repairs so that the seller fixes them before it’s sold or create some wiggle room in the asking price so that the buyer can fix them. 

Find a Local Real Estate Agent to Guide You Through The Process

A REALTOR® will be able to find the best options for you in your home search. 

Team Melton is ready to help you with the home buying experience. Our team of professionals has over 50 combined years of real estate experience to assist you through every step of the process.

Contact us today to get started on your search for homes for sale in Evansville or homes for sale in Newburgh

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