<prompt> Human: At what point should someone consider themselves financially prepared to purchase a home? With many zero-down mortgage options and generous approvals, many people are able to take on more debt than they can afford. At the same time it is unrealistic for most people to pay cash for a home. My wife and I are trying to determine when we will be ready to make a home purchase. We have decent income but we still have about 12k in student loan debt and about the same amount in savings. If we paid off our debt, how much should we have set aside before purchasing a home? Are zero-down mortgages worth looking into or would it be better to rent for 5 more years and save aggressively for 20 down? What other advice would you give to someone considering buying their first home?  <response>: When you plan to live somewhere for 5 years. When you have 20 down and 3-5 closing costs, when you have 6 months emergency funds, and when you find a house thats no more than 28 of your combined income and your DTI is 36. 