Your mortgage isn’t the only cost that goes along with buying a home. You’ll also be responsible for purchasing a homeowners insurance policy and paying property taxes. Depending on the kind of mortgage you’re getting and your lender’s requirements, these costs may be added on to your monthly loan payment.
With homeowners insurance, it’s common for buyers to pay the first year’s premiums in advance. If you’re not budgeting for these costs ahead of time, that could throw a wrench in your home buying plans.
Source: SmartAsset – Questions First-Time Homebuyers Forget to Ask