So if you’re ready to make that lifestyle choice, let’s go through how you do it as cost-effectively as possible.The house needs to be an area that’s also desirable by other people; otherwise, it won’t appreciate, and you’ll spend even more money on the house. Determine how much you should spend by applying with a bank. Don’t make yourself crazy trying to find the best rate. It won’t make a huge difference when you factor in our later advice. You definitely need 20% but check if making a larger down payment will get you a lower rate. Look at the monthly payment options and a loan amount that’s well within your cash flow. And we mean WELL WITHIN. Factor in future costs like child care if you’re buying a home pre-kids. We can’t stress this enough: do not max yourself out on the monthly payment. There are all kinds of ways to get a mortgage. In our minds, they're all sort of the same. Don’t go chasing the lowest rate you see on the internet. Just like the internet, you get what you pay for. Keep in mind that loans will almost always get sold unless it’s through a large institution. You can do a Rocket Mortgage search, for instance, but also check with your primary bank or a trusted mortage broker. In the end, choose an apparoch you feel comfortable and confident with.Next, get a 15-year loan if at all possible. A 30-year, $500,000 loan at 5% means that your first monthly payment is $2,684, with $601 of that being paid towards the principal. Now let's look at a 15-year loan: with a shorter term, you'll get a better rate from the lender, so let's use 4.5%. You should be paying off that sucker ASAP. 15-year loan and pay it off faster. You will get killed on the total interest. You could very well spend as much on the interest as you will on the house over a 30-year loan. And if you refinance and get a new term, you’ll probably spend more than the cost of the house! A mortgage is not good debt, and it’s different than a mortgage for a rental because the rental generates CASH. Your primary residence does not.Consider house hacking and refer to our episode 18 on house hacking with Andrew Kerr to learn more about it. If you can generate some cash, that’s awesome. But use that cash to pay down the mortgage.With a good loan strategy, consider what work the house needs and if it adds value. If it had a modern kitchen, but you don’t like the color granite, don’t buy it and plan to renovate. Only do the work that adds value. If it doesn’t add value, just consider a different house where you can find that.Put in a competitive offer based on your agent’s feedback. Don’t low ball too hard, but don’t make an asking price offer if it’s not worth it. How do you know? Look at comps. An hour on Zillow, and you’ll get a good idea. This is not HGTV or Million Dollar Listing, so don’t try to game it too much.Do a detailed inspection and make sure you understand the house. Bring your parents or experienced homeowner friend with you. Mike personally doesn’t ask for much if anything from sellers because he thinks if t’s not material in cost and it wastes time and frustrates people.  Maggie will push a bit harder.If the inspection doesn’t yield a crack in the foundation or Murder Hornets in the walls, you can close on the house. Make sure you have your paperwork in order. Lenders need everything, and it’s usually last minute. It’s a painful process, so prepare yourself.And after weeks of stress, at around midnight the night before closing, everything gets the green light. Go sign the paperwork and celebrate.Top 3 takeaways:You determine how much house you can afford, not the bank.Borrow money for as short of a period of time as possible for your primary residence.Do your homework, but don’t kill yourself over the minutia. It will be ok.Show References:Mortgage Payoff Calculator on Etsy for $3Friends on FIRE episode #18 - House Hacking---Follow friends on FIRETwitterInstagramFacebookLinkedInLeave us a voicemail or text us: 404-981-3370eMail us at:  friendso