Potential homebuyers are often concerned with one word: Mortgage.

A monthly payment is one of the most common determining factors for buyers when looking to purchase a home. And it makes sense – you can’t opt for a house you can’t afford.

But homebuyers should know this isn’t the only cost they’ll need to cover. In fact, a number of logistical fees need to be paid before you’ve even signed a mortgage contract.

That’s not to mention what’s owed afterwards when it comes to property taxes and insurance. However, these costs are usually lumped into your monthly mortgage payment.

Here are some of the costs – mortgage excluded – you’ll need to cover when buying a home.

Home Inspection

A house may have exceptional curb appeal, but that doesn’t always mean it has sound infrastructure. A home inspection is an integral part of the homebuying process that allows buyers to make sure they get what they’re paying for.

During an inspection, an inspector will check to see that plumbing, heating and water systems are up to snuff. They’ll also look at the roof, foundation and the home’s electrical system. If it’s found that something needs repairs, a buyer can use this documentation to negotiate price or fixes accordingly.

The cost of an inspection varies, but Home Advisor reports the national average is about $300.

Miscellaneous Fees

Before and during closing, you’ll encounter additional fees on top of a house inspection.

Like most items of great value, a house needs to be insured. And you’ll have to obtain homeowners insurance before you close on a property. You’ll also need to pay for title insurance and an appraisal fee.

Title insurance lets the lender know that the title to the property is insured. An appraisal fee lets your lender know that the amount you’re paying for the house is in line with its actual value.

Closing Costs

After months of house-hunting, you’ve finally arrived at closing day. Your realtor’s there, along with the seller and your lender. And you’ve got a stack of papers to sign.

Here is where you’ll encounter a large amount of the fees, hence the name closing “costs,” you’ll need to cover in order to purchase your home.

Closing costs include commission to your real estate agent, underwriting fees and property record costs. These represent all the odds and ends associated with purchasing your home. Zillow says buyers should expect to pay between two and five percent of their property cost in closing fees.

Reach Out To Learn More

While a monthly payment, and the overall cost of your home, are important items to consider, buyers should understand that there are additional costs that go into finding your dream home.

Sunrise Banks offers a number of resources for homebuyers, including ways to increase your credit score. Learn more on our mortgage page or by getting in touch.