Buying a home, no doubt, is a big financial commitment.  Whether it’s student loans or other debt you have, you need to look at all the pros and cons on whether it makes sense to become a homeowner.  

While CNNMoney.com says writing a rent check can seem like throwing money away, a mortgage can create a long-term budget crunch.  

You first need to decide if you can afford the monthly payment.  Unlike student loan debt, a house can be taken away from you.  When deciding on whether to loan you money, banks look at debt-to-income ratio along with your credit score.  If you want to do the math yourself, add up all your monthly debts including your potential mortgage payment, then divide it by your gross monthly income.  If the number is higher than 43%, chances are, you’re not going to get approved for a home loan.  

As a millennial, another thing to consider is whether you plan to stay in one place very long.  A recent Zillow report says buying can be more cost beneficial than renting if you plan to stay in a home at least two years.  

You’ll also want to think about how much of a down payment you can afford.  The bigger the down payment, the lower your payments and the less you need to borrow from the bank.  You might also get a better interest rate with a bigger down payment.  If you can, put at least 20% own since most lenders add on private mortgage insurance for any down payment less than 20%.  Also, don’t wipe out your savings account when deciding how much to put down.  You’ll want to have some money in the bank to cover closing costs, moving expenses, and home insurance, not to mention decorating expenses.