Buying a home is one of the biggest decisions you’ll ever make, but understanding the home loan process can make it a lot less intimidating. Whether you’re a first-time homebuyer or just wanting to refinance, knowing the steps involved can help you be more confident in navigating the process.

To make it easier on you, here’s what you need to know about the home loan process, step by step.

Step 1: Determine your budget.

For the most part, your monthly mortgage payment shouldn’t be more than 28% of your monthly income. So if you need help creating a budget, try using a budgeting app for easy tracking.

Step 2: Check your credit score.

Your credit score is a major deciding factor in how much your interest rate will be. Obviously, the higher the score, the lower the rate. Keep in mind that even if your credit isn’t good right now, you can work to improve it. Paying down debt can help boost your score over time.

Step 3: Get pre-approved.

Getting pre-approved for a mortgage can give you an idea of how much a lender would be willing to loan you. Plus, if you have your eye on a particular home, it can convey to the seller that you’re really serious about it, potentially putting you at the front of the line.

To get pre-approved, you’ll need to provide your lender with some financial information — i.e. your income, assets, and debts. They’ll then take a look at everything, and hand you a pre-approval letter letting you know how much you can borrow.

Step 4: Choose the right type of loan.

There are multiple types of home loans that you can apply for. Here are the most common ones:

Conventional Loan

Because this type of loan isn’t backed by the government, you may need a higher credit score to qualify. If you’re approved, expect to pay a higher down payment than some other types of loans, too.

FHA Loan

Backed by the Federal Housing Administration, an FHA loan is a more beginner-friendly option because you don’t have to have a high credit score or a lot of money for a down payment to qualify.

VA Loan

A VA loan is specially designed for veterans and active-duty military personnel who can enjoy really cool perks like no down payment, no private mortgage insurance, and competitive interest rates.

USDA Loans

For people open to living in rural places, USDA loans require no down payment and have pretty low interest rates.

Step 5: Make an offer.

After you pick out your dream home, you can propose an offer. If the seller accepts it, you’ll move on to the next step: the loan application.

Step 6: Complete a loan application.

Even if you’ve been pre-approved, you still have to complete a formal loan application, plus provide additional documentation if requested. While you do that, your lender will likely order an appraisal to determine how much the home is worth.

Step 7: Wait it out.

After you submit your application, the lender’s underwriter will look at it to verify where you work, how much you earn, what your assets are worth, and how much debt you owe. Also during this time, the underwriter will take a look at the appraisal to make sure the home in question is actually worth the money they’re preparing to give you. This can take a few weeks, so sit back, relax, and wait to hear some (hopefully) good news!

Step 8: Tie up any loose ends.

Congratulations, you’ve been approved for a home loan! Now, it’s time to close the deal. This involves signing a bunch of important paperwork like the grant deed, promissory note, settlement statement, etc. Then, of course, you’ll have to pay the closing costs to finalize everything. This mostly includes loan origination fees, appraisal fees, and title insurance. And finally, once the paperwork is signed and the money is received, you’ll get the keys to your new home!