If it were me, I'd make sure to knock out the student loan before buying a house. Trust me, if you buy a home with a ton of debt hanging over your heads, Murphy will move into your spare bedroom and make your lives miserable. If it can happen, it will happen. And that's especially true when it comes to buying a house when you don't have much cash on hand.
You're telling me you can save nearly $50,000 by next year. That means you guys are making pretty good money. So there's no reason you can't turn around and do the same thing next year, right? I mean, this is only a one- or two-year program we're talking about. In another year's time, you could save up for a huge down payment with some extra savings on the side. If you waited and saved for two years, there's a possibility you could pay cash for a bigger place outright. Imagine how cool it would be to have your own home with no mortgage payments.
Just clean up the extra bedroom and fix it up as a nice nursery. Some new carpet or hardwood is always nice. Throw in a fresh coat of paint, and you're in business. Then, a year or two after the new baby arrives, you'll be ready to move from a financial and a family perspective. A baby can live just fine in a small bedroom. There's nothing in the world wrong with that.
Email questions for Dave Ramsey to email@example.com.