Things To Budget For After Closing

 After months of improving your credit, saving up a down payment, and finding your dream home, you have finally made it to the closing table. As a new homeowner, your financial responsibilities are not over. After closing, there may be some hidden expenses you did not think about. Below is a list of items to keep in mind after you buy your first home. 

Your mortgage payment (PITI) 

The biggest monthly expense as a homeowner is your monthly mortgage payment. Your monthly mortgage payment can be broken down as PITI (Principal, Interest, Taxes & Insurance). Like a rent payment, this will be due every month and will be one of your largest bills.

However, what you want to focus on is the principal portion of the payment. The more of the principal balance you pay down, the more you will own your home. Unlike when renting where this money is all deposited directly into your landlords’ pocket.


As a renter, you probably already pay for utilities. However, when living in an apartment, your energy bill can be significantly lower. When you power and heat an entire house, you can expect your utility payment to increase.


Many homeowners take pride in their beautiful yard and curb appeal. While this is one of the perks of owning a home, the downside is that you will need to pay to maintain this yard. These fees can include landscaping, sprinkler systems, and any contractors needed to set up/fix things.


If your home is in a community with an HOA (Homeowners Association), you will need to pay monthly HOA dues. You may also need to pay for upgrades to the community and any damages that might occur. Not all homes have an HOA, but some do. If this is something you want to avoid, you can let your real estate agent know.


Cleaning a home is no easy feat. Whether you need your carpets cleaned, your kitchen tidied or some spring cleaning, this can cost you both money and time.

Emergency Fund

When you own a home your emergency fund will need to be larger. If you had 6 months of reserves, this may now be only 3 months with your new budget and bills. Make sure you calculate 6 months’ worth of expenses using your new budget. This will make sure that if anything happens, you will still be covered.

Curious what your mortgage payment could be? Click here to schedule an appointment with one of our loan advisors. They can help walk you through the mortgage process and find out exactly what your monthly payment might be.