When you apply for a home loan, you will not pay any money for it until you close on the home purchase. You must pay for many things at that time, and it is vital to plan for these costs. Proper planning helps you know when to buy a house, and it also helps you protect your budget. Here are some of the primary expenses you should plan for as you prepare to get a home loan to buy a house.

The Down Payment

The most significant upfront expense of buying a home is the down payment. Down payment requirements vary, but you should expect to pay between 3.5% to 20% of the home's purchase price. For example, if you buy a house for $200,000, you should have between $7,000 to $40,000 for your down payment. Some people qualify for 0% down loans, but this is rare. You can ask your lender what percentage you will need for yours, and they will tell you. You can use this amount to find a house you can afford. If you do not have enough money saved for this expense, you may want to wait to buy a house until you have enough.

The Closing Costs

The next significant expense you will have is for the closing costs. The total amount you must pay for these costs also varies, and your lender can help you determine how much they are before you close on the home purchase. Closing costs cover various things, including the fees your bank charges for the loan. They also cover other costs, such as the inspection expenses and costs for the appraisal and survey.

Your closing costs might also include prepayments for your home insurance policy you must purchase for the house and property taxes. Home loan lenders typically provide borrowers with a statement that reflects all the costs they must pay when getting a loan. If you have questions about these costs, talk to your lender.

Move-In Costs

The other expense you can plan for is the move-in costs. Many people forget to factor in these costs, but you should consider them. Moving into a new home can result in extra costs, and you can protect your budget by planning for these. For example, you might have to pay a moving company for services. You might also have to pay deposits on your utility accounts.

Proper planning is essential when getting a home loan purchase. If you have questions, talk to a lender today.