<prompt> Human: I am really just posting this to rpersonalfinance because I feel like it could inspire some good discussion as well as help someone who is considering buying a home. I wrote this up initially because I was the first in my group of friends to buy a home and I constantly get asked a bunch of questions so I thought I would write something up to help answer most questions. NOTE: All of this is based on my experience and opinions and is in no way meant to be the ONLY way.My info for reference:23, 76k-80k bonus dependent, 202k home brand new, live in the south, 6 year girl friend at 40k soon to be over 50k. I can easily afford the house even if we were to split, also I bought the house myself, she will not be on the mortgage until we are married in about a year. Also any money she pays towards to extra principle outside of her rent payments would be refunded to her in the event of a break up. I have do debt outside of a car loan that has payments of 280month. My mortgage payments are 1199 a month including about 112 in PMI I will be out of PMI in 2 years.Can I afford a home?This is the most important first question any potential home buyer should think about. Generally a good rule is about 3x your yearly income before taxes is a good way of finding what you can afford, if you are more conservative I would advise 2x-2.5x. Now you might think you can afford a lot more because you have been approved for loans of 4x your income or maybe your dad told you 4x. My 3x would be about 240k which I am nowhere near. The reason being is first time ownership costs a SHIT TON of money. Let me say that again, A SHIT TON. All those great perks and freebies of living in an apartment are now on you. I will now go into these costs below.Now I have an idea of what I can afford in terms of a mortgage, how do I know a house is for me?First off, if this thought has entered your mind I am just throwing away money by renting!! I need to buy a home now!! please smack yourself until it disappears and you forget it altogether. Before even thinking about the additional costs of owning the home you have to think of the additional costs of acquiring the home. Use this calculator to help get an idea of what I am talking about:So now I am convinced that I should buy a home, I can afford the kind of house I want and it is beneficial on the rent vs. buy calculator. What is next?Now you need to think about some very important questions:-Do I see myself wanting to live in this area for the foreseeable future?-Is my job stable enough to be sure I can live in this area for the foreseeable future?-Are there any short sighted things effecting my decision? Girlfriend, parents, comparing yourself to others-Will you be buying this home with a girlfriend? How will things work out if you break up? Can you afford it without her? What are the laws regarding these situations?-Do I have an emergency fund that can cover all the expenses listed below as well as the expense listed in the rent vs. buy calculator regarding closing costs?-Again, do you have an emergency fund? DO NOT LIE! If you lose your job 1 month after closing, you better be safe for at least 6 months of mortgage payments as well as bills.-Do I have a large enough down payment to avoid PMI?-Will I get out of PMI quickly if I want to buy now?-Can I take care of a home? A lawn? Leaks? Painting the house?- How big of a house do I want VS. how big of a house do I need? Really think about this as the bigger the home the bigger the costs on a monthly and yearly basis. Everything is multiplied: heatingcooling, repairs, roofing, electric etc. Try to buy the smallest house that will accommodate your needs. You may wonder why I bought such a large house while giving out this advice. The reason being that I see great value in the extra space, one example is one room is now my personal gym which saves me and my girlfriend at least 80month.I am not going to go into detail about how you should answer those questions or what is right or wrong because it should be obvious, if you dont plan on living somewhere for more than a year why the hell would you buy a house?I answered all the questions. I am ready for a house. It makes sense on the rent vs. buy calculator and I see no issues with your questions. What else do I need to do?Now we are at the part that will make some of you run off crying and I apologize for that. I bought a brand new house so my costs will be A LOT lower than if you were to buy a 5 year or 10 year old house. Think about major repairs like: roof, appliances, plumbing etc. I dont have to worry about that right now.Here is a breakdown of my costs of home ownership along with estimates of their costs:I do not include insurancepmitaxes as they are in escrow for me or built in the mortgage payments, also did not include internettv etcMy house specs: 2800 sq ft 5br !! Also very important, I live in the south so these numbers will be extremely cheaper than if you were to live in say SoCalNYCBostonDC. These are facts you should obviously know and account for. When I wrote this guide it was for friends who live near me so I did not have to add this disclaimer!!-General saving in case of major repair 2000year- General upgrades and decorations 50month-Fenced my 13 acre lawn with a wood privacy fence 22001 time-Fence care 350year-Water 40month-Electric 110month-Natural gas not required 24month-Security not required 30month-Fully furnish the house 600 I was given furniture from my grandparents and parents so my cost here is EXTREMELY low, to furnish my house the way I would like to would cost about 6200 from what I have gathered.-Pest services not required 100 year-Lawn mower not required 200-Weed whacker not required 50-If you do not have them blinds are EXTREMELY expensive I am talking around 2000 for a house my size, I did not buy them however as they are almost always worked into the house price as well as appliances. Appliances could be another 2000 if the house doesnt come with them.-Ceiling fans not required 500This all I can think of right now but I will be sure to update this if I think of more.If you have successfully read through everything above and you are 100 sure you understand everything, you are ready to buy a home in my personal NOT PROFESSIONAL opinion. My advice on home buying is below:-Find an area you like first, as always location is the most important thing.-Check websites for crime in the area, looks at the schools if you plan on having kids or if you have them.-See how your commute would be, actually drive to the house in the morning and drive to work as if you woke up in your new home. Do the same thing when you leave work. DO NOT SKIP THIS.-Drive the area at night and see what it is like, make sure it is still suburbia when the lights go off.-See what general traffic youll have to deal with for years will be like.-See if there is an HOA and be sure to read their guidelines and understand all the rules before buying a home.-Find a real estate agent based on referral from people much older than you and from someone you trust. This will help greatly.-Figure out EVERYTHING you want. This will help in buying your home. Here is the actual list I sent my real estate agent, she called me because she couldnt believe a 23 year old could possibly be so prepared and knowledgeable. Important:- 3-5 bedrooms Optimal 4- 2 baths- 1750 square feet Optimal 2400- Garage- 2006- No need for very soon repair of: AC, roofing, similarGreat Pluses:- Gas range- Granite counters or island- Fenced in backyard- 2 car garage- Stainless steel appliances- Prefer black cabinetscounters- Prefer that appliances stay as well as ceiling fans- Patio area- No need for repaintingNegatives:- Most expensive Least expensive house on street- Has cut out for where TV should go hole in wallKey thing to remember about a realtor -- they work for you. Ask them questions, have them show you as many houses as you want, ask them for information on recently sold homes, ask them to send you newly listed houses etc. They make more money based on how much more you spend so keep that in mind as well. I trusted my realtor for finding me the locations and getting me comp information. At the end of the day though you also need to do your own research and ALWAYS be ready to walk from a house if the price isnt right. Some times the sellers just wont be reasonable.Now that you have been very thorough your agent should find you a great place and you should be ready to go! There are definitely more things to the process and its a shit ton of paper work, but I wont get into that right now as I just typed more than I have since college writing this up. I may edit later if people find this useful.  <response>: My opinion:Have a down payment 10 min. 15-year fixed rate conventional mortgage FHA and VA loans typically have higher fees. Total monthly payment should be less than 25 of your take home pay. Have a 6 month emergency fund.If you follow those guidelines, financially, youll do well. 