<prompt> Human: I just recently got a new job in a new city and I am considering buying a home rather than renting for the first time. Please help me decide if this is a wise decision based on the following information.-My new job will pay 65,000 yr. -I will have 16,000 in a low interest savings account by the time of purchase. -10,000 in my 401K. -3,000 car loan. -30,000 in low interest student debt. -Credit score above 760 in all reports. - Average rent for a 1 bedroom apartment is 1200. -Average sale price for a 2 bedroom bungalow is around 180,000. -I intend on living there for at least 5 years. -I will have one roommate paying rent. Am I crazy to think that buying a home is the right decision in this scenario? Even if I only put 5-10 down and have to pay pmi until I hit 20 equity, my mortgagetaxesinsurance should hover around the cost of rent for a less desirable unit, plus an added roommate will alleviate more of the burden.  <response>: The house is within your price range, but your savings are nowhere near large enough.A single unexpected repair could wipe out your savings. You should have a large emergency fund left over after you make your down payment.If you do a 10 down loan without PMI, commonly an 801010 mortgage, you would put about 18k down. You should be able to save that much by the end of the year, considering your salary -- its 1500 per month. You will also need a few thousand dollars for closing costs. After that, you should have an emergency fund of 3-6 months expenses left over. Even if you can live on little money, I would not buy a home without at least 10k in an emergency fund.The bottom line is that you should wait until you have more money in savings before buying. Once you have the savings, your salary should be sufficient to buy a home in the price range you mentioned. 