Buying a home is one of life’s most exciting milestones. It’s the moment when all your planning, saving, and searching finally come together. But while most buyers focus on the purchase price and down payment, there are a number of additional costs that can catch you by surprise if you’re not prepared.

Knowing what to expect before you close the deal will help you budget wisely and avoid last-minute stress. Whether you are buying your first home or your next one in Lake Geneva, being financially ready means understanding the full picture of homeownership.

A home inspection is one of the smartest investments you can make before finalizing a purchase. It helps you identify potential issues such as roof damage, plumbing leaks, or foundation concerns. While it might feel like an added expense, it can save you thousands of dollars in the long run.

Typical home inspections in Wisconsin range from about $300 to $600, depending on the size and age of the property. If you buy a lakefront home or an older house in Lake Geneva, you may need additional specialized inspections, such as septic, water quality, or mold testing.

Budgeting a few hundred dollars for these evaluations ensures you know exactly what you’re getting before you sign the paperwork.

Lenders require a professional appraisal to determine a property’s market value before approving a mortgage. This protects both you and the lender by ensuring you don’t overpay for the home. Appraisal fees typically fall between $400 and $700. The cost can vary based on property size, location, and complexity. This fee is usually paid upfront, so plan to include it in your early budget calculations.

Closing costs are often one of the biggest surprises for buyers. These are the fees associated with finalizing your loan and transferring ownership of the home. Common closing costs include lender fees, title insurance, attorney services, and recording fees.

On average, closing costs range from 2 to 5 percent of the total purchase price. That means for a $400,000 home, you could be looking at $8,000 to $20,000 in closing costs. Your lender or real estate agent can provide a detailed estimate early in the process, so you’re not caught off guard.

While you may expect to pay property taxes and insurance once you move in, many buyers forget that these costs often appear at closing as prepaid expenses. Lenders usually require a few months of taxes and insurance to be placed in an escrow account upfront.

Property taxes in the Lake Geneva area vary based on the home’s assessed value and location, while homeowners insurance depends on coverage type and property features. Budgeting for these costs early will help ensure you have enough set aside when it’s time to close.

If you make a down payment of less than 20 percent, your lender will likely require private mortgage insurance, or PMI. This insurance protects the lender in case of default. PMI usually costs between 0.3 and 1.5 percent of your loan amount per year and is included in your monthly mortgage payment.

While PMI can feel like an unwanted extra, it allows buyers to purchase a home without having to wait until they have a full 20 percent saved. You can typically request to remove PMI once you’ve built enough equity in your home.

Moving is another cost that buyers often underestimate. Whether you hire a moving company or handle it yourself, expenses can add up quickly. Professional movers may charge anywhere from a few hundred to several thousand dollars, depending on distance and volume. If you’re moving locally within Lake Geneva, costs will be lower, but don’t forget to include packing supplies, boxes, and transportation fees in your budget.

If you’re relocating from another state, getting multiple quotes in advance is wise. Planning ahead and setting aside funds for moving will make your transition to your new home smooth and stress-free.

When you move into a new home, you’ll need to set up utilities such as electricity, gas, water, internet, and trash service. Many utility companies require deposits or activation fees for new accounts. These may range from $50 to $300 per service depending on the provider.

It’s also worth noting that monthly utility costs can vary depending on the size of your home, insulation quality, and energy efficiency. Before closing, ask the seller for an estimate of average monthly bills to help plan your budget.

Even a move-in-ready home will require regular upkeep. Set aside a portion of your budget for maintenance and unexpected repairs. A good rule of thumb is to save 1 to 2 percent of your home’s value each year for maintenance.

For a $400,000 home, that means keeping $4,000 to $8,000 available annually. This fund covers things like HVAC servicing, roof maintenance, landscaping, or small repairs that pop up unexpectedly. Having this money ready prevents you from being caught off guard when something breaks.

Once you’re in your new home, you’ll likely want to make it feel like your own. New furniture, window treatments, and décor can add up quickly. Many homeowners spend thousands after moving in, especially if they are upsizing or changing styles.

To keep things manageable, prioritize the essentials first—beds, seating, and dining furniture—then gradually add decorative touches over time. Planning your design budget ahead of time helps you furnish your new home without financial strain.

If you’re buying in a neighborhood with a homeowners association, you’ll need to factor in HOA fees. These fees cover community amenities, maintenance, and sometimes landscaping or snow removal. They can range from a few hundred to several thousand dollars annually depending on the community.

Ask your agent for details about any HOA requirements before making an offer so you can include these fees in your overall budget.

One of the best ways to prepare for the unexpected is to maintain an emergency fund. Life happens, and having a cushion for unforeseen expenses—such as a leaky roof or appliance replacement—can prevent financial stress. Aim to keep three to six months of living expenses saved, especially if you’re transitioning into homeownership for the first time.

The key to managing these extra costs is to plan early. Create a spreadsheet that lists both one-time and recurring expenses. Include your down payment, closing costs, taxes, insurance, and estimated maintenance. Add a 5 to 10 percent buffer for surprises.

Your real estate agent and lender can also help you estimate expenses accurately based on your specific property and loan. Having a clear picture of your total financial commitment allows you to move forward confidently and enjoy your new home without regret.

Buying a home in Lake Geneva is an exciting journey, and with the right guidance, it can also be a smooth one. Janis Hartley is one of Lake Geneva’s top real estate agents, known for helping clients navigate every step of the buying process—from budgeting to closing day. She will walk you through all the details, connect you with trusted local professionals, and ensure no financial surprises.

If you are ready to start your home search or have questions about planning your home-buying budget, contact Janis today. With her local expertise and personalized service, you can confidently move forward knowing you are prepared for every step of your Lake Geneva home-buying journey.