Title insurance is usually mandatory for the mortgage, and its optional for you as owners. I chose to pay the extra and cover myself as well as the bank.

Paying up front for the insurance surprised me too. Then the insurance agent surpassed himself, he took two checks (flood insurance also gets paid ahead), cashed one, lost the other, and didn't credit my account for either.

The final surprise expense will probably show up in a year or two, whenever the town changes the valuation of the house to reflect what you paid for it, and ups the real estate tax. Mine went up 50% after I'd lived here for 15 months.