All the answers from the other agents are all very good. There is one thing you might consider to help ease your personal comfort, if it is doable. See if you can save or put aside 3 months of mortgage payment as a cushion. Few years back it was a requirement that if you obtained a conventional loan, the lending institution wanted to see at least 2 if not 3 months of mortgage payment in the bank.
This suggestion is not meant to scare you or concern you, if you don't have that amount currently. Just thought that might help your jitters down the road.
Your question regarding is 40% of net income high?. One way for you to answer that question might be asking yourself the following questions.
1. Will you still be able to enjoy the amenities and events that Denver offer. Example prior to owning a home, you went out on 2 weekend nights once a month. now you feel you can only go out one weekend night once a month. Is that acceptable to you?
2. You enjoy going to the movies or theaters x times a month, now it's x times a month, is that acceptable to you?
3. You put x amount aside into a savings account or 401k account, Now you can put aside x amount. Is that acceptable to you?
And if not what can you do about it, or can you make changes to your spending patterns and still have â€œyour cake and eat it tooâ€ ïŠ
Those are the type of questions that might help you answer your unknown concerns. Sometimes it's the fear of the unknown that makes us worry, but if you can put a face or a picture to what that fear is, you might find it was not as bad as you thought.