Making the transition from renting to homeownership is a huge leap — and a change that shouldn’t be made without careful planning and budgeting. While the prospect of buying a house can seem daunting, there are several ways you can prepare to ensure that making the purchase is the best choice for your family.

Realtor Velda Lueders, 2018 president of the Arkansas Realtors Association, says that the process of finding a home is especially fun with first-time buyers.

Her insight into finding the right house is simple: “There’s no such thing as the perfect home, but there’s a home that’s perfect for you.”

Here are four ways you can make sure you’re prepared for homeownership.

1. Get Preapproved for a Loan

A mortgage banker can help you determine which type of loan is best for your financial situation. Some loans are available with no money down, but the minimum for an FHA loan is a 3.5 percent down payment.

Your credit score, bank statements, income and other factors all play into your pre-approval, which will give you a cap on how expensive of a home you can purchase, although Lueders recommends staying under that maximum amount in order to leave room in your budget for other lifestyle choices.

2. Be Prepared for Additional Costs

Saving up for a down payment is just one of the major costs you can incur when purchasing a home. You’ll also need to pay for a home inspection, which can cost several hundred dollars. Depending on negotiations with the seller and the terms of the loan, you could also be required to pay part or all of the closing costs, which are typically several thousand dollars, but Lueders says many buyers will negotiate for the seller to cover those costs.

Lueders added that, when a buyer puts less than 20 percent down on the home, they’re required to pay mortgage insurance as an added fee on their monthly mortgage payments, another cost to consider when beginning the process.

3. Ask for Realtor Referrals

The seller pays all of the realtor fees involved with the purchase of a home, so as the buyer, you don’t have to worry about paying your agent — it’s a free service! Your friends and family are the best sources to help you to find a real estate agent who is knowledgeable, trustworthy and skilled.

“You want to choose an agent based on their experience, their knowledge and their work ethic,” Lueders said. “And then let us guide you; let us help you — this is what we do.”

Lueders added that a common misconception is that it can be easier to shop on sites like Zillow and Trulia and call the agents who are selling each home. She said the listings on those third-party sites are not updated frequently and any agent can show any house — you don’t need to call the number on the “for sale” sign.

4. Think About the Timing

The process of purchasing a home can take several months depending on how quickly you are preapproved for a loan and how quickly you find a home. After your offer on a house is accepted, it generally takes around 30 days to close on a property.

Once you’ve moved in, it’s important to think about your long-term stay in the home in order to make the most of your investment.

“Most people say if you’re not going to stay at least two years it’s not worth purchasing because the first few years all you’re paying is interest,” Lueders said.

By paying an additional couple hundred dollars each month on the principal, it’s possible to reduce a 30-year mortgage to 15 or 20 years. Several free calculators are available online (like this one) to see how overpayment can impact your payment timeline in the long run.