⏱️ 9 min read
Last Updated: March 17, 2026
Next Update: March 1, 2027
You’ve outgrown your current home, and you’ve got the equity to make a move. The down payment and mortgage payment are already on your radar. But a complete home buying budget goes beyond those two numbers.
Knowing exactly what to expect from the start makes the whole process run more smoothly. This article walks through every home buying cost category so your budget is complete before you ever talk to a lender.
How much money do I need beyond my down payment to buy a home?
Closing Costs and What They Cover
Closing costs typically run 2–5% of your loan amount, and these are a key home buying cost. For most Jagoe buyers, that lands in the $7,500–$8,500 range, depending on your location, lender, and loan type. These costs included lender fees, title fees (Jagoe uses Forman Watson), and appraisal fees. This also includes other prepaid items like yearly homeowner’s premiums, prepaid interest, and funding your escrow account.
One cost that comes even before closing is earnest money, typically $500–$2,000 on a $400,000 home. On a Jagoe home, your range is closer to $500 – $2,000. It’s applied toward your purchase at closing, but it is cash you’ll need ready early in the process.
So, what do closing costs actually cover? Lender origination fees, title insurance, home appraisal, prepaid homeowner’s insurance, and attorney or settlement fees. Also, property taxes are often collected 2–3 months in advance at closing, so factor that into your closing day cash needs.
Building with Jagoe also means no construction loan. One traditional mortgage, one closing, and no mortgage payments until your home is complete.
Beyond these main closing costs, there are a few other expenses you’ll pay at or shortly after closing that are important to understand.
Property Taxes and Homeowners Insurance
Property taxes are part of your annual homeownership budget, and they vary depending on which community you choose. In Warren County, KY (where Bowling Green is located, a prime Jagoe area), annual property taxes typically run around $865. In Vanderburgh County, IN, they average about $875 per year. When you’re comparing communities, these differences add up over time, so it’s smart to factor them into your decision.
Most lenders will ask you to pay your first year of homeowners’ insurance at closing. Homeowners insurance typically costs between $800 and $1,500 per year, depending on your policy. Standard coverage doesn’t include everything, so check whether your location warrants separate flood or mold coverage.
Now, if you’re putting down less than 20%, there’s one more cost to add to that picture.
Private Mortgage Insurance (PMI)
If you’re putting down less than 20%, lenders require PMI until you reach 20% equity. If that’s your plan, you need to add this home buying cost to your budget. It typically runs 0.5–1% of your loan amount annually. For most buyers, that cost is worth accepting to move sooner rather than spend years saving toward a larger down payment. You need to decide what works best for your family’s budget, timeline, and goals.
Once you hit 20% equity through payments or appreciation, you can have it removed. And if you’re using equity from your current home toward the down payment, you may avoid PMI altogether.
That equity from your current home is a key part of the picture. But before you count on it, it’s worth understanding what selling that home is actually going to cost you.
The Cost of Selling Your Current Home
For move-up buyers, there’s one home buying cost that often gets overlooked until it shows up in the numbers. Selling your current home isn’t free. Realtor commissions typically run 5–6% of the sale price, and that comes directly off the equity you were counting on for your down payment. It’s worth running those numbers before you assume you know what you’re working with.
The other challenge is timing. Sell too soon, and you need somewhere to live in between. Wait too long, and you risk carrying two mortgages at once.
With the sale handled and closing behind you, the costs shift from one-time expenses to the recurring ones you’ll budget for every month and year.
Ongoing Homeownership Costs to Budget For
Once you’re settled in, there are several recurring expenses to build into your budget.
- Utility Costs: Most households spend $250–$335 per month ($3,000–$4,000 annually) on electricity, water, and gas. Moving into a larger space typically means higher bills than you’re paying now. Jagoe EnergySmart and TechSmart homes run 38–68% more efficiently than standard homes. Families in Jagoe communities report average monthly savings of $110.
- HOA Fees: Not all communities have them, but when they do, fees and restrictions vary significantly. In Jagoe communities, we work hard to keep these fees as low as possible, and with minimal restrictions. It’s worth reviewing the specifics of any community before you commit.
- Maintenance and Repairs: A good rule of thumb is setting aside 1–3% of your home’s value each year. On a $300,000 home, that’s $250–$750 per month. Building new gives you a head start since you have extensive warranty coverage, but the habit is worth building from day one.
Those are the ongoing costs. There are also a few one-time expenses that come with the move itself that are easy to underestimate.
Moving Expenses
Moving fees are an easy home buying cost to underestimate, especially when you’re moving a full household. Local moves and long-distance relocations can vary significantly in cost, and beyond the truck there’s utility setup, address changes, and the odds and ends that come with any move.
If you’re coordinating around school schedules, timing adds another layer to manage.
A reasonable starting point is to budget 3–5% of your purchase price beyond your down payment to cover closing costs and move-in expenses combined. It’s an estimate, not a guarantee, but it tends to cover the range without leaving you short.
With all of these numbers in hand, the question becomes how to put them together into a plan that actually works.
Smart Planning Strategies
A little preparation goes a long way when it comes to the financial side of buying a home.
The families who navigate this process most smoothly are the ones who start financial planning 6–12 months before they’re ready to buy. A detailed spreadsheet that maps out every cost category gives you a complete picture and makes the eventual conversations with lenders much more straightforward.
| One-Time Home Buying Cost | |
| Cost | Estimated Amount |
| Earnest money | $500–$2,000 |
| Closing costs | $7,500–$8,500 |
| Homeowners insurance (first year) | $800–$1,500 |
| Property taxes (at closing) | Varies by area |
| Selling costs on current home | 5–6% of sale price |
| Moving expenses | Varies |
| Ongoing Monthly Costs | |
| Cost | Estimated Monthly Amount |
| PMI (if applicable) | Varies by loan amount |
| Utilities | $250–$335 |
| HOA fees | Varies by community |
| Maintenance reserve | $250–$750 |
The above numbers are estimates. Your specific numbers will vary based on location, lender, loan type, and the home you choose.
The other piece is choosing a builder who makes the financial side easier, not harder. From your first conversation with Jagoe, the process is built around transparency. Every cost, every timeline, every decision point is laid out clearly. No surprises, no hidden expenses, and no complicated financing process. With 85+ years of experience building homes for families throughout Indiana and Kentucky, that’s not a promise, it’s a track record.
Every cost in this article is knowable before you ever talk to a lender. The down payment and mortgage are the big numbers, but it’s the complete picture that keeps the process from feeling overwhelming. When you know what’s coming, you’re not reacting to costs as they appear. You’re already ahead of them.
An energy efficient Jagoe Home begins with intelligent design, quality construction, and generations of working to exceed our own standards of excellence. Jagoe Homes committed to all the practices it takes to build truly energy efficient homes, and we work closely with RESNET (Residential Energy Services Network) to achieve great ratings from that organization.
HERS® (Home Energy Rating System) INDEX
*Based on the US Department of Energy definition of HERS index of 130. This information presented for educational purposes only. Savings are average estimates based on Jagoe Homes’ top five selling plans. Savings will vary based on house type, orientation, house size, utility rates, climate and operations of the home.
The lower a home scores on RESNET’S HERS (Home Energy Rating) Index, the more energy efficient it is. A standard new home that’s built to meet the 2006 IECC will score a HERS Index of 100. New Jagoe homes score an average of 62, making them at least 38% more efficient than a standard new home and at least 68% more efficient than a used home.
Financing Your New Home Build, Simplified
Need answers fast? Our Jagoe Acrisure Financing Team is located in Owensboro, Kentucky, and has the resources and staff to get you into your new Jagoe Home. We work closely with you, combining expertise and advanced tools to make navigating your home loan process simple and seamless. Whether you’re ready to build a house on your land now or just exploring financing options, we are committed to helping you achieve your goals quickly and effectively. Our team is committed to getting you started with a stress-free experience from start to finish.
For Financing please call an Acrisure Mortgage Team Member
Bambi L. Winstead
Branch Manager
Mortgage Loan Originator
NMLS# 369809
Call or Text
502-389-0088
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Kevin Young
Mortgage Loan Originator
NMLS# 1577520
Call or Text
904-673-3173
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Kyle Chubboy
Mortgage Loan Originator
NMLS# 1763549
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352-978-1811
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