Jeni VanOrnum | Real Estate Insights & Education

One of the first questions every first-time homebuyer in Douglas County asks me is: “How much house can I afford?” I’m Jeni VanOrnum, your local Douglas County real estate agent, and today I’m breaking down exactly how to calculate your homebuying budget in 2023.

The 28/36 Rule Explained

Lenders typically use the 28/36 rule: your housing costs shouldn’t exceed 28% of your gross monthly income, and your total debt payments shouldn’t exceed 36%. For example, if you earn $6,000 monthly, your housing payment should stay under $1,680, and total debt under $2,160.

What’s Included in Your Housing Payment?

Many first-time buyers forget that your monthly payment includes more than just principal and interest. You’ll also pay property taxes (in Douglas County, approximately 0.5% of home value annually), homeowners insurance ($1,200-$2,000 yearly), HOA fees (common in Castle Rock and Parker communities), and PMI if you put down less than 20%.

Current Douglas County Calculations

With 2023 interest rates around 6.5%, here’s what different income levels can afford in Douglas County:

• $75,000 income: approximately $300,000-$325,000 home
• $100,000 income: approximately $400,000-$450,000 home
• $125,000 income: approximately $500,000-$550,000 home

These estimates assume minimal other debt and standard down payment assistance programs.

Don’t Forget Closing Costs

First-time buyers often overlook closing costs, typically 2-5% of the purchase price. On a $400,000 home, budget $8,000-$20,000. However, down payment assistance programs can help cover these costs.

Online Calculators vs. Reality

While online mortgage calculators provide estimates, they don’t account for Douglas County-specific factors like varying property tax rates between Castle Rock, Parker, and Highlands Ranch, or the impact of HOA fees in different communities.

Get Pre-Approved

The best way to know exactly how much house you can afford? Get pre-approved with a lender who understands Douglas County first-time buyers. I work with several excellent local lenders who can provide accurate numbers.

Work With Jeni VanOrnum

Ready to determine your exact homebuying budget in Douglas County? Contact me today. Together, we’ll ensure you’re shopping in the right price range and maximizing your buying power.