The process of buying a home can feel intimidating, whether it’s your first real estate purchase or your third. The housing market we’ve experienced over the past several years doesn’t help either, as buyers struggle with unaffordable home prices, higher mortgage rates and limited inventory.

The key to making it less scary is to know what’s ahead and surround yourself with knowledgeable professionals who can help guide you.

Here’s a step-by-step checklist for buying a house.

1. Understand the Current Housing Market

The housing market has been extremely volatile over the last several years. If you’re looking to buy a house, the current housing market is a major factor in your ability to make a successful offer. Before you start home shopping, take your time to learn more about what’s happening in your local market.

Consumer survey data shows more pessimistic inflation forecasts over the year than forecasts from the Federal Reserve, which could impact mortgage rates.

The 10-year Treasury yield influences mortgage rates, but they also include a spread based on economic conditions and risk factors. If inflation remains high, the Fed is less likely to cut interest rates, which means Treasury yields will stay elevated.

2. Do Your Research

To help you narrow down your search, make a list of your wants and needs in a house and the neighborhood you prefer to live in. Visit sites like Zillow, Trulia, Redfin and Realtor.com, donnacrowley.comto get an idea of the houses for sale that meets your criteria. Take a look at how much these homes cost, and consider whether it fits within your budget If not, you may need to make some compromises or adjust your search area.

3. Get Your Finances in Order

Buying a house is one of the biggest financial commitments you’ll ever make, so you’ll want to make sure your finances are solid before looking at homes.

Understand where you stand financially. Mortgage lenders will look at your cash reserves and compare your income and debts to determine whether you can afford to make monthly mortgage payments. Lenders will also pull your credit report. Most lenders require a FICO score of 620 or higher to approve a conventional loan.

Check your credit and make sure all of your credit cards are paid off if you can. You can check your credit report for free from each of the three major credit reporting bureaus – Equifax, TransUnion and Experian – once per week at AnnualCreditReport.com. It’s a good idea to request a report from each agency and review it carefully, as there could be inconsistent or inaccurate information.

“I would encourage first-time buyers to look into the programs that may be available to them,” Herman says. “There are also FHA and veterans programs, which can cut down or eliminate your down payment.”

4. Get Preapproved for a Mortgage

Contact potential lenders to get preapproved  for a mortgage.

Prequalification is more like a rough estimate of what you can borrow, but a mortgage preapproval is an in-depth process where a lender will verify financial information – W-2s, tax returns, pay stubs, assets, credit – to determine what loans you could be approved for, the amount you can borrow and what your interest rate could be. This can help you figure out what you can afford and gives sellers the idea that you’re serious about the financialcommitment.

“Most real estate agents won’t give buyers their full attention unless they know they can follow through with financing to get the purchase done. Which makes sense – why waste time on buyers who aren’t in a position to purchase?” he says.

Your lender may also offer a mortgage rate lock once you’re preapproved, which is typically available for up to 60 days or sometimes longer. A rate lock is a great idea when rates could rise, but if rates drop, you can’t just switch to the lower interest rate.

5. Contact a Real Estate Agent

Reach out to Donna Crowley with Crye-Leike Realtors

6. Start Touring Homes

Your real estate agent will likely present you with listings that meet your budget and needs, and also encourage you to look online for other homes you may be interested in. Most buyers prefer in-person tours, but you can also get a virtual tour if you can’t or don’t want to visit the property.

7. Make an Offer

Once you’ve found the house you’d like to call home, it’s time to have a conversation with your agent about making a offer.

“Prospective buyers should be ready to make compelling offers that reflect both the market value and their personal valuation of the property

Review the sale price of similar homes in the area that sold recently to help you determine how much you feel the home is worth. Your agent can put together a list of real estate comparables, or comps, which shows how much buyers paid for similar, recently sold properties in the same area. This can give you a better idea of how much you should offer.

8. Negotiate

When you submit your offer, the seller has three options: accept, reject or counter the offer.

9. Send Your Earnest Money Deposit

Once your offer is accepted, you’ll deposit earnest money with a third party, such as a law firm, title company or real estate broker, which is held in escrow until closing and applied to your down payment or closing costs. Earnest money is known as a good faith deposit, generally 1% to 5% of a home’s purchase price, and shows you’re a serious buyer.

10. Schedule a Home Inspection

With the deal pending, it’s time to get moving with the due diligence process – part of which is the home inspection. A home inspection is a visual assessment of the home’s condition by a licensed inspector, and their findings can help buyers make a more informed decision.

If your purchase offer includes a home inspection contingency, you could negotiate repairs or walk away from the sale altogether.

11. Get an Appraisal

Your lender will typically require an appraisal of the property to ensure the determined sale price matches the market value of the property. The appraisal often figures into the total closing costs of a home.

12. Do a Final Walk-Through

A couple of days before closing, you’ll complete a final walk-through of the property, which allows you to check and make sure it’s still in good condition.

13. Close and Receive the Keys

The closing itself is fairly straightforward and requires signatures noting the transfer of ownership. You may sign documents in person with a representative from your title insurance company or with e-signatures if they are allowed, depending on your state.

Once you have the keys in hand, you’re now the owner of a new home. “In any market, I offer the same tip, especially to a first-time buyer – if you see a house you absolutely love, buy it. You can always refinance down the road,” Herman says.