Home Buying Budget Breakdown for First-Time Buyers in Northern California

Are you thinking about buying your first home and wondering, “What can I actually afford?” You’re not alone! Hi, I’m Kallie Orr a Realtor® based in Northern California, and I help everyday buyers navigate the market with clarity, confidence, and heart.

Let’s break down what “affordable” really means when buying a home in areas like Citrus Heights, Folsom, Fair Oaks, Carmichael, and Orangevale.

Start With What You Take Home, Not Just What You Earn

One of the biggest mistakes first-time buyers make is using their gross income (what you earn before taxes) when planning their home purchase. But what truly matters is what you take home each month—your net income.

Pro Tip: Your mortgage should fit your life, not the other way around. I always recommend budgeting based on what you feel comfortable spending, not what a lender says you qualify for. 

What Goes Into a Monthly Mortgage Payment?

Your monthly housing payment isn’t just the price of the home divided by 12. It includes:

  • Principal + Interest

  • Property Taxes

  • Homeowners Insurance

  • PMI (Private Mortgage Insurance) – If your down payment is under 20%

  • HOA Fees – If you're buying in a community with one

It adds up, and understanding these parts helps you avoid surprises later.

Avoid Being “House Poor”

Just because you can afford a payment doesn’t mean you should. You still want space in your budget for:

  • Groceries 

  • Gas + Car maintenance 

  • Emergency savings 

  • Fun! 

Your home should give you stability, not stress.

Need Help Finding Your Budget?

I walk buyers through this every day. Whether you're planning ahead or ready to start house hunting now, I’d love to help you build a strategy that’s grounded in you: your lifestyle, goals, and comfort zone.

Let’s chat about your budget and game plan.

Prefer to Watch the Video Instead?

You can watch the full YouTube video here:
How Much House Can You Really Afford?

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