But if you are ready and eager to own a home, consider the following:

Save for a down payment. The more money you put into a home, the lower your monthly payments, although there is also a point at which too large down payments can be financially unwise. However, if you can make a down payment of more than 20% of the purchase price, you can usually avoid having to pay for private mortgage insurance on top of your monthly payments. Additionally, as a first-time home buyer, you may be eligible for down payment assistance from your local housing authority or government or non-profit group.

Check your credit score. A higher credit score gives you a better chance of getting a lower interest rate. You can request a credit report from annualcreditreport.com, and you may be able to get a free credit score from your bank. If you need to improve your score, you may want to delay buying your home.

Find out how much you qualify and how much you should spend. Once you think you are ready to begin the home buying process, you may want to contact a few lenders to determine how much mortgage you qualify for. Be aware, however, that just because you can get a mortgage for a certain amount doesn’t mean you should. You don’t want to become a “house poor” that is, you don’t want to spend as much on your house payments as you are strapped for money and cannot afford. save for other goals, like college for your kids. or a comfortable retirement. You may want to budget for how much you can easily afford to pay on your mortgage each month – and try to stick to it before you buy the home. If you have additional savings, put them in your down payment.

Prepare for unforeseen costs. You can plan for your mortgage, utilities, taxes, and insurance, but when you own a home, you always run into unforeseen costs. You may need to get a new furnace, repair your roof, or face a number of other maintenance issues. To help prepare for these costs, try building an emergency fund with three to six months of living expenses, with the money held in a low-risk liquid account. Without such a fund, you may be forced to dip into your long-term investments or take on additional debt to pay for these unexpected expenses.

Homeownership can be a rewarding experience – and the rewards will be even greater when you’ve ‘done the numbers’ and prepared yourself financially.

This article was written by Edward Jones for your local Edward Jones financial advisor.