Alert Icon HomeStreet Bank branches are OPEN with restricted hours and access. Learn More

Personal Banking, Home Loans & Business Banking and Loans

Couple exhausted from moving

The first year of homeownership: three costs you’ll need to cover

Read time 1 minutes

For would-be homeowners, it’s easy to become hyper-focused on the mortgage payment. After all, it’s the one big expense you can always count on. But what many first-time buyers don’t realize is that the first year of homeownership comes with a few other surprises (and we don’t mean your new neighbors).

The good news is that, with a little planning, you’ll be able to cover these additional costs of purchasing a home:

Closing costs

Before the purchase is final, you’ll need to deal with closing costs. These include miscellaneous fees for attorneys, titles, surveys, inspections and more. Typically, they range from 2 – 3% of the price of the home, and aren’t included in your down payment.

Mortgage and/or homeowners’ insurance

Homeowners’ insurance covers you in case anything should happen to your property. It’s important to note that natural disaster coverage typically isn’t included in insurance plans. But depending on where you live, you may want to add flood or earthquake coverage for peace of mind.

Additionally, if your down payment is less than 20% of the home’s value, your lender will probably require you to purchase mortgage insurance. This way, it stays protected in case you default on your loan.


Unless you plan on using sleeping bags or dining on the floor, you’ll need to budget for new furniture. You may plan on bringing your current collection of couches, tables and appliances, which will work… unless your new home is bigger (in which case, you’ll want to fill out the space). In the event that the seller is including their furniture in the sale, make sure it’s in good shape.


Find an Affinity Loan Officer

IMPORTANT: Hometown Program and Inside Edge mortgage benefits cannot be accessed from a HomeStreet branch or home loan center. These benefits can only be accessed through one of our specialized Affinity Loan Officers.

Blue Backdrop Blue Banner

Get to know your workplace benefits program.


You Are Leaving HomeStreet Bank

By choosing “click here to continue” you will be taken to a web site that is not affiliated with HomeStreet Bank and may offer a different privacy policy and level of security. HomeStreet is not responsible for and does not endorse, monitor or guarantee content, availability, viewpoints, products or services that are offered or expressed on other web sites. Furthermore, products offered on other web sites may not be FDIC insured. Thank you.

You are leaving our secured site to send an email. Please be aware this email is not a secure method of communication. Do not use email to send us confidential or sensitive information such as passwords, account numbers or social security numbers. If you need to provide this type of information, use our secure “Contact Us” form or by phone or fax for other secure options.

Return to HomeStreet Bank Click here to continue