Home buyers should be prepared for a bundle of extra costs beyond the mortgage payment.

“Some people walk away from closing with a nickel and a stick of gum, and that’s probably not going to be a good idea,” says Dale Robyn Siegel, president of Circle Mortgage Group, in Harrison, N.Y.

People whose only previous experience is renting often don’t realize how costly water, heating and air conditioning, taxes, and general maintenance can be, says Allan Glass, owner of ASG Real Estate Inc. in Los Angeles.

He estimates that buyers should have at least 1 percent of the purchase price of their home set aside for improvements and other expenses.

Source: MarketWatch, Amy Hoak (12/28/2009)