Wondering how much house you can afford in Colorado Springs? Depending on what you’re looking for, Colorado Springs has everything from affordable new construction to luxury properties.
In this post, Barb Schlinker and our real estate experts at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will discuss how to build a home-buying budget, regardless of what kind of home you’re after. We’ll also share what the current Colorado Springs housing market is like.
Key Takeaways:
- In general, it’s recommended to spend no more than 28% of your monthly income on housing costs, while keeping your total debt expenses to 36% of your income.
- The average down payment ranges between 15% to 17%. First-time buyers should consider down payment assistance programs and other first-time buyer financing options.
- In recent months, the median sale price in Colorado Springs was $475,000, a 6.7% increase from the same point a year ago.
How Much House Can You Afford in Colorado Springs?
To figure out how much house you can afford, it’s important to start by knowing your monthly income and how much you can put towards housing costs each month. After you determine your monthly income, take a look at all your debts and how much you pay towards them each month.
In general, it’s recommended to spend no more than 28% of your monthly income on housing costs, while keeping your total debt expenses to 36% of your income.
Once you have a deeper understanding of your finances, start making a list of all the housing costs you can expect to pay. This includes:
- Down Payment: The average down payment ranges between 15% to 17%. First-time buyers should consider down payment assistance programs and other first-time buyer financing options. These programs can lower your down payment to three to five percent, or even as low as zero down. Talk to your lender to evaluate your options.
- Monthly Mortgage Payments: Make sure your monthly payments stay within the 28% guideline for your monthly income.
- Closing Costs: For home buyers, closing costs are usually between 2% to 5% of the home’s purchase price.
- Other Homeownership Expenses: These include costs like property taxes, homeowners insurance, HOA fees, and regular maintenance costs. The exact amount of these costs will depend on your home and specific neighborhood.
The best way of figuring out how much house you can afford is by applying for mortgage pre-approval from a lender.
A lender will evaluate your finances and give you an estimate of how much of a loan you can receive once you officially apply. You can use this amount to help you form a budget and guide your house-hunting experience.
What is the Housing Market Like in Colorado Springs
In recent months, the median sale price in Colorado Springs was $475,000, a 6.7% increase from the same point a year ago. The average price per square foot is $217, which is a 4.8% increase from last year.
Most homes sell for 1% below the asking price, while the hottest homes sell for 1% above their asking price. In addition, 32.3% sell above their asking price, and 30% of homes experience a price drop at some point after being listed.
Barb Schlinker is the Best Realtor in Colorado Springs
If you’re looking for the best realtor in Colorado Springs, look no further than Barb Schlinker and our team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team. We’ve been in the real estate business for 30+ years, which means we’ve helped thousands of home buyers find their dream homes.
Throughout our career, we’ve developed a reputation for high-quality customer service, attention to detail, and a stress-free experience thanks to our VIP Buyer Program. With this program, you get curated property hotlists, free home-buying resources, and our unique Buyer Satisfaction Guarantee.
To learn more about buying a house in Colorado Springs with our team, reach out to us today at 719-301-1802 or [javascript protected email address]. Don’t wait to find your dream home!
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