 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: What Are Additional Costs Associated With Buying a Home?\n--------------------------------------------------------\nPurchasing a home entails a major number of costs, some large and some less so. Many expenses associated with a home purchase, such as down payment, origination fees and PMI (if necessary) are incorporated into the final financing arrangements: The down payment is due at closing (with the exception of certain government-backed home loans, discussed below). Origination fees typically are due at closing as well, although some loan terms allow them to be \"rolled up\" into the monthly payment and paid out (with interest) over the life of the loan. PMI, when required, is incorporated into the monthly payment as well.\nAdditional one-time costs associated with a home purchase include:\n*   Fees for an appraisal, which is required by the lender to ensure the purchase price doesn't exceed the home's resale value.\n*   A property inspection (to ensure there are no undisclosed defects in the home before you finalize the purchase).\n*   Fees for a lawyer to review sales documents and attend the closing as your legal representative.\nRecurring costs you may incur with the home purchase may include:\n*   A homeowners property\/casualty insurance policy that covers the value of the home (typically required by lenders until the mortgage is paid off; policy premiums are often incorporated into monthly loan payments).\n*   Homeowners association (HOA) fees. The amount of these fees, and the services provided in exchange for them, vary among different associations. Some include trash and snow removal, landscaping services, maintenance of common areas such as a clubhouse, pool or racquet courts, and so on.\nNote that any recurring expenses directly connected to the property you plan to purchase will be added to the mortgage payment for purposes of calculating your front-end DTI. END