When buyers sit down with a lender, the focus is almost always on one number: the monthly mortgage payment. If the payment feels comfortable, it’s easy to assume the rest will work itself out.
But here’s the truth no one tells you during that pre-approval high: the mortgage is only part of the picture. Owning a home in Indiana -especially with our four full seasons- comes with extra costs that can surprise even the most careful first-time buyer. If you don’t budget for them from the start, they can turn your dream home into a financial stressor.
The Mortgage is Just the Beginning
Lenders qualify you based on your income, debts, and the cost of the home. But they’re not factoring in that your furnace might be on its last leg, your roof might need replacing in 5 years, or your water heater might call it quits mid-winter. These aren’t “if” expenses -they’re “when” expenses.
In Indiana, where we get freezing winters, humid summers, and plenty of rain, home systems work overtime. This means higher wear-and-tear and a greater chance of needing repairs sooner than you expect.
Annual & Seasonal Maintenance Adds Up
Even if your home is brand-new, it still requires ongoing care. Here are just a few examples of common annual or seasonal costs in the Midwest:
- Gutter cleaning and downspout maintenance
- Lawn care and tree trimming
- HVAC servicing before winter and summer
- Snow removal equipment or services
- Pest control (ants, wasps, and mice are common here)
Each item on this list might seem small individually, but together they can easily run into the thousands over a year.
The “Oh No” Fund: Why You Need It
Unexpected repairs don’t wait until you’ve saved up for them. A frozen pipe, a sudden roof leak, or a broken sump pump can happen any time -and in Indiana, these problems can escalate quickly if not fixed right away.
A good rule of thumb is to set aside at least 1% of your home’s value annually for repairs. For a $200,000 home, that’s $2,000 a year -minimum- just for the “what ifs.”
Don’t Forget the Lifestyle Costs
A bigger house might mean higher utility bills, especially in winter. That charming backyard could require a riding mower. That inviting fireplace? It’ll need chimney cleaning and possibly extra homeowners insurance coverage.
These lifestyle costs aren’t dealbreakers -but they are budget changers.
How to Budget the Smart Way
Instead of maxing out your budget on the mortgage payment alone, work backward. Decide how much you can comfortably spend on housing each month including:
- Mortgage
- Property taxes
- Homeowners insurance
- Average monthly utilities
- Maintenance fund savings
- Repair/replacement savings
This approach keeps your budget realistic and your stress levels low.
The Bottom Line
Getting pre-approved is exciting -but it’s not a green light to spend every dollar the bank offers you. In Indiana’s climate, with its mix of seasonal challenges, the real cost of homeownership is more than just your mortgage. If you plan for the whole picture -not just the payment- you’ll enjoy your new home without the constant fear of financial surprises.