For many people, one of the best representations of the American dream is owning your own home.

But whether you picture a large suburban haven or a modest starter home, the path to homeownership can initially seem intimidating. If you’re looking to make the switch from renting to owning, here the top questions to ask yourself to help ensure that you’re emotionally, mentally, and financially prepared for each step of the way.

Am I ready to buy?

Before you start looking at homes, give yourself some time to sit with the decision. After all, owning a house calls for a strong commitment, so it is imperative that you assess the following areas.

Budget
Owning a home comes with additional expenses besides just the housing payment. On top of the monthly mortgage, you’ll have to account for property taxes, insurance, and potential repairs as well as likely increased utility bills. To assess whether these costs are within your means, consider the 50/30/20 rule of budgeting. This means allocating 50 percent of your income for essential needs, 30 percent for wants, and 20 percent for savings and debt repayment. Though it can be tricky to accurately estimate what your possible expenses may be, creating a hypothetical budget will give you a better gauge on your homeownership affordability so you can move forward with confidence.

Lifestyle
While buying a home doesn’t have to be permanent, it does come with greater complications should your personal or professional circumstances do, and it may not be easily changed if your personal or professional circumstances do. Consider both your short-term and long-term goals to help flesh out whether now is the time to buy and what choices to may suit your needs best if the answer is yes.

Accountability
Are you up to the challenges of homeownership? Becoming a homeowner does give you more freedom over your own space, but it also means you will be responsible for repairs once becoming a homeowner, such as fixing broken heaters or dripping faucets. This can require time and money, so be prepared for additional responsibilities that may arise.

Am I financially prepared for the purchase?

Once you decide you want to move forward, you’ll need to take a serious look at your financial health.

Credit score
Generally, you’ll need a credit score of 620 to qualify for a loan, though some lenders may have lower or higher requirements. The better it is, though, the better your interest rate may be regardless of the mortgage you apply for. Get a copy of your credit report from each of the three big bureaus (TransUnion, Equifax, and Experian) to assess your current credit status, then make steps to help improve it.

Debt-to-income ratio (DTI)
This percentage compares your monthly take-home pay to your credit card and debt payments, such as for credit cards and student loans. Though some lenders may accept a DTI ratio of up to 43 percent, most prefer one that is less than 36 percent.

Down payment
The larger the down payment you place, the lower your mortgage payment and total borrowing costs may be. For instance, a 20 percent down payment can result in monthly savings of hundreds of dollars on private mortgage insurance (PMI). Additionally, many government programs and lenders offer down payment assistance programs for first-time buyers. Research these options and consult with a real estate agent to see what you may qualify for.

When should I buy?

Winter
The colder season typically results in a lower demand for homebuyers. Wintertime may offer decent prices and motivated vendors since this isn’t considered the “hot” season in real estate. If you’re selective as a buyer, however, shopping during the hotter time of the year may be ideal to have a plethora of options to choose from. Spring is typically the most active market for homebuyers, so keep this in mind when you put in an offer.

What mortgage should I get?

In a competitive market, obtaining preapproval on a mortgage will show sellers that you are committed to your purchase and have the required funds. During this process, lenders will assess your credit score, DTI, income, and other factors to ascertain the maximum loan amount they are willing to give. Some real estate agents suggest that you weigh your options before accepting a mortgage offer. Here’s a quick rundown of some different loan types available.

Conforming conventional loan
This is the most common loan option. It typically requires only a 3 percent down payment, but 20 percent is ideal to avoid PMI. The minimum required credit score for these loans is typically 620.

Federal Housing Administration (FHA) loan
If you have a lower credit score, this may be a good option. FHA loans offer a path to homeownership with a minimum down payment requirement of 3.5 percent to 10 percent, depending on your credit score. Be aware, though, that you will have to pay mortgage insurance on the loan.

US Department of Agriculture (USDA) loan
Setting up shop in a designated rural or suburban area? USDA loans offer a zero down payment option for buyers who a credit score of at least 640 and meet the income and other criteria.

Department of Veterans Affairs (VA) loan
Veterans, service members, and eligible spouses, this one’s for you. VA loans don’t ask for a down payment and typically offer competitive interest rates. Minimum service requirements apply, and some lenders may have additional credit score or income qualifications.

Keep in mind that different lenders may have their own variations and eligibility requirements. It’s always wise to consult with a mortgage professional to discuss your specific situation and determine the best loan option for your homebuying journey.

Now that you are equipped with the basics of making the leap from renting to owning, it’s time to team up with a real estate agent and embark on this exciting next chapter of your life. With careful planning and their expert guidance, you can turn your dream of homeownership into a reality.