10 hard truths no one tells you about buying a house

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Being a homeowner is part of the American dream, but that white picket fence comes with a side of unexpected realities.

While buying and owning a home can be fun and rewarding, it’s not all HGTV makes it out be. From hidden expenses to housekeeping demands, it involves a lot more mental and monetary effort than most originally anticipate.

According to Zillow, 52% of homeowners view their home as a financial investment and 48% view it as a reflection of who they are personally. That said, it’s important to make the right decision when house shopping — and know what you’re in for as you aim to get those keys in your hands.

Here’s what no one tells you when it comes to buying and owning a home.

You don’t need to spend every penny of the amount you’re qualified for

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Proceed with caution when exercising the mortgage rate you were approved for —while your finances may look good on paper, only you truly understand them in the context of your lifestyle. Buy the house you know you can afford, not the maximum the mortgage company thinks you can afford. It’s in your best interest to leave yourself a cushion for things like unexpected costs or the possibility of a future change in your income. Otherwise, you’ll be on the fast track to being house poor.

Trulia recommends limiting payments to no more than 30% of your gross monthly income, while some lenders recommend 28% for housing related costs including mortgage, insurance, and taxes.

Your furniture budget may exceed your expectations

realtor.com

Of course you’ll need new furnishings for your new house, but if you think you can just move that four-foot bookcase or mid-century sofa from your apartment into your new Craftsman abode, think again. Depending on the house’s architecture, space, and style, your furniture might not be the right size for a room or might be a completely different aesthetic altogether.

Take a hard look at what you can and can’t take with you — and sell what won’t work in your new home. Furnishing a new home from scratch can cost up to 25% of the home’s value. When you move in, your best best is to refrain from going on a spending spree and focus on upgrading slowly.

Your monthly payment consists of more than just your mortgage

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You can thank online mortgage calculators for providing you with a misleading monthly figure. As Business Insider previously reported, they only take into account the information you provide and only consider the principal payment and interest payment.

To get a more accurate picture of monthly house-related finances, you’ll also need to take into consideration homeowner’s insurance, property taxes, utilities, and possibly homeowner’s association fees — and that’s not to mention upfront closing costs, which can be up to 5% of the home purchase.

Try using Zillow Group’s Realestate.com, which has an all-in monthly pricing tool that breaks down all potential monthly expenses.

See the rest of the story at Business Insider