Research this now to buy a home next year: finances, the market, the process, your wish list. The more you know the better equipped you’ll be to tackle the huge milestone of buying a home next year.

Deep Dive on Your Finances
First, create a budget. Use an online mortgage calculator to estimate your monthly mortgage payment. Try to stay within 28–30% of your monthly income as a guideline.

Next, do what you can to boost your credit score and get it up to par. Pay down your debt to shore up your debt-to-income ratio and strengthen your mortgage application.

Then, save. You can hard-core save money for six months to a year with the goal of a sizeable downpayment in mind. Some loans may require a 3%-ish downpayment, but if you can get to 20% you’ll avoid adding the extra Private Mortgage Insurance required monthly.

Analyze the Market and Learn the Process
Start monitoring home prices in your favorite areas. Check on mortgage rates weekly. Learn about the different loan options and what might work best for you.

Attend a homebuyer’s class or webinar. Find a real estate agent you connect with and ask all the questions. Learn as much as you can about the process so there are fewer surprises when you’re ready.

Make Your Wish List
Create an essentials list for your dream home but be realistic. Weighing your affordability, your needs and your wants will help you make an informed decision next year.