Buying a home is an exciting and rewarding time. As this likely marks a milestone in your life, it’s critical to be prepared when looking to buy a home. While the down payment is often viewed as the most important expense, there are other costs that first-time home buyers don’t even consider. With that said, it’s important to secure your investment with a St. Louis Homeowners Insurance policy and to take additional fees into consideration.

Home Inspection

Prior to signing on the dotted line, you have to make sure the house is in good condition. Once your offer has been accepted by the seller, have a home inspection completed. Kiplinger states that if you uncover hidden structural, mechanical or other issues, you can negotiate the repair terms with the seller before you finalize the deal; otherwise, you will be solely responsible for any problems and the cost of fixing them. These inspections can run between $200-$600, depending on where you live. Also, bear in mind that this cost is nonrefundable, even if the deal falls through.

Appraisal Fee

Before your lender will provide you with the loan for your house, they have to ensure it’s worth what you’re asking to borrow. This upfront cost of a professional appraisal will run an estimated $250-$600, as well.

Escrow Account

Your lender may require you to have an escrow account in order to pay additional fees for your home on your behalf including taxes and insurance premiums. If this is required, you will need to pay an additional one-twelfth of the total yearly expenses into that account to cover these costs.

Closing Costs

In addition to the down payment, you will need to have another 2-5% of the home’s purchase price saved up for closing costs. Depending on the price of the home, this can be a significant amount.


Maintaining the home and making the proper repairs can cost a pretty penny. From landscaping to paint to new appliances, you’re on the hook for all of these expenses.

At Sine Insurance Group, we strive to protect your prized possession with the proper coverage to meet your specific needs. Our commitment to excellence and our superior customer service has allowed us to serve St. Louis and the surrounding areas for the last 25 years. For more information on our products and services, call us today at (855) 700-0889.