Welcome to NerdWallet’s SmartMoney podcast, where we answer your real-world money questions.

This week, we’re talking to Chris Browning of the Popcorn Finance podcast, who wants to buy his first house. Chris wonders how to pull it off in Southern California, where home prices are high and options for first-time buyers seem limited.

Our take

Becoming a first-time home buyer is particularly tough in expensive places such as Southern California, where the median home price is over $500,000. In most other parts of the country, you can pay a lot less, get a lot more house or both. But not everyone can move away, or wants to.

Every home search should start by getting a realistic estimate of what you can afford. You don’t need to have a 20% down payment — most first-time home buyers put down far less, often as low as 3% (or 0% if they’ve been in the military and can qualify for a VA loan). Many areas, including Southern California, have programs to help first-time home buyers come up with the cash for a down payment.

Smaller down payments mean you have to pay private mortgage insurance, but it’s generally better to get into a home and start building equity than to put off a purchase waiting to amass a larger down payment. It’s possible to wait too long and have home prices rise so much that you can no longer afford to buy.

You do, however, need to have enough money saved to cover not just the down payment but also closing costs and at least two months’ worth of mortgage payments.

Also, don’t buy if you’re not sure you’re going to stay in the area. The costs of buying and selling a home are significant and it takes a few years’ worth of appreciation to offset those.

Our tips

Make sure you can stay put. You typically need to live in a house for three to four years, maybe even more, just to break even.

You don't need a huge down payment. You'll need to pay mortgage insurance, but you'll also get into a new home sooner and start building equity.

But you do need to save up more than just your down payment. Expect to pay closing costs and have a cash reserve big enough to cover a couple of mortgage payments after closing.

More about first-time home buying on NerdWallet: