Lots of good advice here but I'll add that if it's even remotely possible you can buy a house in a less desirable neighborhood on a 15 year loan, do it. The savings are enormous, especially if you can overpay. I bought my first house at age 34 and had it paid off at age 40. The interest on 30 year loans are crushing, no matter if you overpay or not. The interest starts at roughly 90% of payment, versus a 15 year loan that starts around 70%. And, of course, those loan interest rates drop at twice the rate for a 15 year loan, even faster if you can overpay (even by a few percentage points makes a big difference down the road). As a starter home, you probably don't want to live there forever but having 30% of the principal paid off in a few years is a pretty big deal (and a good way to weather any drop in market prices to prevent going underwater on a home).