There are several factors, in addition to the purchase price, that you must factor into your assessment of affordability, whether you're planning to acquire your first house or trade up to a larger one. If you are not knowledgeable and prepared, these additional fees, such as taxes and other costs, could come as an unwelcome financial shock on closing day.

These expenses range from one-time, set expenditures to recurring, monthly or annual commitments. Even if not all of these expenses will apply in every circumstance, it's best to be aware of them in advance so you can plan your finances effectively.

It's vital to keep in mind that purchasing a home is a significant milestone, and whether it's your first, second, or tenth, there are several minor but crucial elements, as well as tension and enthusiasm, to manage during the process. The last thing you need in the hours leading up to moving in is unexpected financial commitments.