By Jeff Lazerson | jlazerson@mortgagegrader.com | MortgageGrader.com | March 23, 2026
Article originally posted in Orange County Register on March 19, 2026
If you or your loved ones are in the market to buy a home, take heed of one recent survey on the true cost of homeownership. It could save you and yours a small fortune.
Nationwide, besides the down payment, homebuyers expected to pay an average $8,083 for other homebuyer-related expenses. They actually paid $31,502, according to a nationwide Pollfish survey of 947 homeowners.
Those expenses included:
• $15,073: repairs and improvements during the first year of ownership
• $7,678: home seller concessions
• $5,719: closing costs
• $3,032: moving costs
For homebuyers having to pay their buyers agents’ commission, the total cost soared an additional $46,560.
Had they known the true cost of buying a home, 73% of respondents would have made different decisions.
So, for today’s column, let’s focus on ways to prevent paying more than expected when closing on a home.
Repairs and improvements
More than half of homebuyers (55% in the survey) said they spent more on home repairs and maintenance than they planned. In fact, out of all the homebuying expenses, repair and upgrading costs were the most surprising to buyers.
Always hire a home inspector immediately when heading into escrow.
Even so, home inspectors don’t catch everything. One in three surveyed buyers said his home inspector missed problems that ended up being costly. One in 10 respondents regretted not hiring a more thorough home inspector.
I recommend you hire a California Real Estate Inspection Association certified inspector. Or, hire an American Society of Home Inspectors certified inspector as California has no inspector licensing requirements.
In essence, you want an inspector who has passed industry standards tests with strong inspector standards.
Seller concessions
These concessions largely come down to either paying some of the seller’s closing costs (which is uncommon in Southern California, in my experience) or paying more than the appraised value of the home.
Not overpaying is not as simple as it seems.
Sometimes, you may find a one-of-a-kind property that has enormous value to you, even though the appraiser cannot come up with comparable properties at the same price.
Another reason is comparable sales are in the rearview mirror. This means they’ve already closed escrow. Appraisers cannot use current listings or properties in escrow as comparable properties that may have a similar (higher) value as the one you are buying.
If it’s not a one-of-a-kind property and you are not emotionally attached to the property, negotiate the price down or walk away.
Closing costs
Closing costs from the lender or settlement agent (escrow company) should come with no surprises.
After you shop around and find your best lender, thoroughly go through the loan estimate form and closing cost charges (provided to you within three days of application) with your mortgage loan originator.
Match that up with your closing disclosure form (sent to you right before closing). Those numbers should largely or exactly match. If they don’t match, ask your MLO for an explanation. If there is not some change in circumstances, the MLO and lender should make you whole (refund the overcharge or take it off) before closing.
But in some circumstances, price change does happen. For example, maybe you could not qualify for the original X loan, but you could qualify for the Y loan. And that Y loan has different pricing than X loan.
Eighty percent of the time, I recommend buyers lock their loan interest rate upfront instead of gambling that rates will come down during their loan application period. Remember, rates can go up just as easily as they can go down.
Regarding the escrow company, federal law allows the buyer to choose the settlement agent.
In practice, the listing agent chooses the escrow service provider.
My suggestion: Shop three local providers and send the cheapest bid to the listing agent’s escrow company. Ask the escrow officer to match the price. In my experience, they do price-match. If not, you can always make a stink about the buyers’ legal choice under federal law.
Moving costs
The cost to move should not come as a surprise if you shop up front for your mover.
“Movers must give you a not-to-exceed price estimate,” said James Fox of Terry Moving & Storage.
Lessons to learn
Jaime Seale, the survey’s author, was surprised by how unprepared buyers are.
“Buyers are so off base with their estimates. They aren’t financially prepared especially since there are so many online resources available,” Seale said.
Seale also suggested going to people in your community (those you trust and have experience in this area) and asking them if there is anything else you should be asking (of the real estate agent, lender, inspector, mover and escrow company) since you don’t know what you don’t know.
My suggestions: Always do your homework upfront. Don’t make assumptions.
And you should have multiple conversations with your real estate agent and your lender about what to expect of the process and the costs you’ll be required to pay.
The reason? You can get overwhelmed with this process and may end up not being able to absorb everything in a single conversation.
Study methodology
Clever Real Estate and Best Interest Financial surveyed 947 American adults who bought a home in 2023, 2024 or 2025, asking about their homebuying experience. The survey was conducted Jan. 16-Jan. 30.
Freddie Mac rate news: The 30-year fixed rate averaged 6.22%, 11 basis points higher than the previous week. The 15-year fixed rate averaged 5.54%, 4 basis points higher than the previous week.
The Mortgage Bankers Association reported a 10.9% mortgage application decrease compared with one week ago.
Bottom line: Assuming a borrower gets an average 30-year fixed rate on a conforming $832,750 loan, last year’s payment was $246 more than last week’s payment of $5,111.
What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with one point: a 30-year FHA at 5.49 %, a 15-year conventional at 5.375%, a 30-year conventional at 5.99%, a 15-year high-balance conventional at 5.875% ($832,751 to $1,249,125 in Los Angeles and Orange County and $832,751 to $1,104,000 in San Diego), a 30-year high-balance conventional at 6.375% and a jumbo 30-year fixed at 6.125%.
Eye-catcher loan program of the week: a 30-year mortgage, fixed for the first five years at 5.25%, with a 30% down payment and a 1-point cost.
Jeff Lazerson, president of Mortgage Grader, can be reached at 949-322-8640 or jlazerson@mortgagegrader.com. His website is www.mortgagegrader.com.
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