Buying your first home is an exciting milestone—and one of the biggest financial decisions you’ll ever make. While it’s tempting to jump in as soon as you find a house you love, a little preparation can go a long way in ensuring a smooth, successful purchase. Here are five important things every first-time homebuyer should know:

Many buyers confuse pre-qualification with pre-approval, but they’re not the same. Pre-qualification is an informal estimate of what you might be able to borrow. Pre-approval, on the other hand, involves a lender reviewing your income, credit, and financial documents to confirm how much they’re actually willing to lend.

Just because a lender offers you a $700,000 loan doesn’t mean you should use every dollar. Remember to factor in closing costs, property taxes, insurance, utilities, and maintenance.

You can change the countertops, but you can’t change the location. Spend time in the neighborhood at different times of day, check commute times, research school ratings, and even explore community safety apps.

Will this home fit your life five or ten years from now? Is there space to grow, or flexibility to convert rooms for new needs?

Buying your first home can feel overwhelming. A great real estate agent will walk you through each step, help you avoid costly mistakes, and answer questions you didn’t even know to ask.