What are the hidden costs of buying and owning a home?

Beyond your down payment and monthly mortgage, plan for closing costs (typically two to three percent of the purchase price), which include lender fees, title insurance, escrow fees, prepaid property taxes and insurance, and recording fees. After closing, budget for property taxes, homeowners insurance, HOA fees if applicable, and any CFD or SAID assessments. Maintenance and repairs average around one percent of the home's value per year, though this varies. You'll also have higher utility bills than renting, especially for cooling in Arizona summer with APS or SRP. Many new buyers underestimate landscaping upkeep in desert properties. Set aside reserves for major replacements like HVAC, water heater, and roof. If you're stretching to buy, these ongoing costs can create stress, so build them into your affordability calculation from the start.