<prompt> Human: My wife and I with two kids are buying a home in the Midwest, we rent now. Its 250k and were buying using FHA loan with 3.5 down. Taxes are about 4k annually and insurance 800 annually.We make 130k gross combined, and have no CC debt, but 400 a month in student loan payments 90k total at 3, and one car payment of 250 9k balance at 2.5 for another 3 years other car is paid off. Have 25k savings and 30k in retirement. Plan is use about 10k of cash savings for down payment and closing costs, and leave the rest for emergency fund. Our rent is 950 and new house payment will be about 1850 at 4 interest and with PMI and taxes and insurance.We currently save around 30k a year but with new home payment and adding in for home repairmaintenance expenses were estimating this will drop to 15k annually. Our current plan would be to focus on paying off car loan first and then split annual savings between increasing emergency fundretirement and paying off home.A little about the home. Its 12 years old and is move in ready without any work. Utilities will be about the same.To my wife and I this sounds like a reasonable plan. We could wait another year before we buy and save more for down payment but we have been working 10 years to get our debt and income to where it is now and feel now is the time. Wed greatly appreciate though some alternative perspectives and ideas though, thanks!Edit: Thanks guys for the adviceperspectives. Definitely agree this is more of emotional decision than rational. Some background, we lost a business 5 years ago and have rebuilt credit and paid off a lot debt 65k, and this is why we still are not quite to a solid PF situation. 2 years and we would be in great position but were renting in a small house for past 4 years, and just emotionally ready for a win in life. The new house is 2000 sqft above grade and another 800 sqft finished below. Definitely a nicer, nearly new quality home and we could go cheaper by up to 75k but this home is move in ready and does not have anything needing workrepairs. In our area you can get down to maybe 175k home for what we are looking for but would be getting much lower quality andor older and inefficient house.  <response>: just emotionally ready for a win in life This statement is a huge red flag to me. A win would be paying off your debt, not taking on more. You dont buy a home, you buy a house. You already have a home. It is where you and your wife are. Doing it the right way will feel like a real win. If you get a house in two years instead of now you will probably be in a better financial situation for the rest of your lives. Wont that feel like a win? A win is having financial security, not a massive, illiquid, debt-financed possibly depreciating asset. 