<prompt> Human: Were married, mid-20s, child free, living in a HCoL area. Weve been renting for 4 years and had pretty much enough of it. I should say from the start that the homes we are looking at are new constructions, so we are not worried about sudden HVAC or roof issues. Here is our plan for buying our first home: - Budget: 450,000- Saved for down payment and other costs related to the purchase: 95,000- Income 1 W2: 55,000 bonuses 5k- Income 2 1099: 50k Combined: 105,000 not including the bonus 5k- Expenses: 1,650 fixed rent, phone, internet, water, sewage, groceries and around 1,000 variable gifts, vacations, gas, clothes, haircuts, etc. Total: 2,650. - Debt: zero. And I mean zero. No student debt, no loans, no credit card debt. - Credit scores: 765 and 780. What do you guys think? Are we ready to purchase a home, from a financial POV? We also contribute to retirement and save around 25 of our monthly income. We havent spoken to a mortgage officer yet and we wanted yall opinion.  <response>: From a financial point of view - you are reasonably prepared for purchase, you do need to add some more savings for upfront costs, plus need to be prepared for the jump in your monthly committed spend.Upfront : With a price of 450K - you need the down payment 90K closing costs around 5-6K upfront cost for any furnishing appliances etc. 10-15K, varies depending on what comes with the house - and a buffer for any contingencies. Your current 95K is a good start but you need to be prepared with upto another 20-30K more.Monthly spend : Youve lumped rent others together at 1650; Im guessing the rent part may be around 1K month.With a price of 450K and 20 down - youre looking at a monthly spend Principal, Interest, taxes and Insurance of around 2.7K - 3K for a 15 year fixed mortgage, and around 1.8K - 2K for a 30 year fixed. Keep in mind that with either, your expense Interest, taxes, insurance will be MORE than the current expense of around 1K; your equity buildup is the remainder. Unless there are other countervailing factors larger home considered, or windfall rental thats not sustainable - your rent vs buy decision may be towards the rent rather than buy.You may NOT be able to continue contributing 25 of monthly income to retirement savings; keep in mind that in addition to the above, over a 3-5 year period you WILL have some repairs maintenance etc costs even with a brand new house. 