We were in debt up to our eyeballs. Here's how we dug ourselves out of it and bought a home

Jade and Sam initially reacted to their financial situation after getting married in 2007 by downsizing their lifestyle in order to pay off their debts and save for a home. They sold Sam's townhouse and all their furniture, and moved into a one-bedroom apartment they could afford. A year later, they rented a cheaper place where they could have roommates to save even more money. This was a difficult time for them, as they felt like they were falling behind in life compared to their friends who were buying homes and having babies. However, they were determined to pay off their $460,000 in consumer and student loan debt before buying a home. Their goals were to save $1,000 for an emergency fund, pay off all debt, save up 3-6 months of basic expenses, and save for a down payment, earnest money, and closing costs on a home. It took them 10 years to achieve these goals and buy their first home in 2018.

In the context of Jade and Sam's financial planning, the acronym DECK stands for:

D. Down payment: Save at least 5%. (If you can hit 20% and avoid PMI, even better!)
E. Earnest money: You need to be prepared to put this money down up front when you make an offer to show you’re serious about buying a home. (It will get applied toward your down payment when you close.)
C. Closing costs: These fees can be around 5% of the purchase price, and they’re usually rolled into your mortgage loan. (This matters because it affects your monthly payment.) You can pay for these fees in cash or increase your down payment to offset them.
K. Keep in mind and save for miscellaneous expenses—like inspection, appraisal and the actual move!