Unless you’re in a position to pay off all your obligations and have enough money for a down payment and closing costs, you need to make some decisions about which debts you need to focus on before applying for a mortgage. Make two lists: one of all of your monthly expenses and income and another itemizing your debts with their interest rates.

Use the first list to determine your debt-to-income ratio (DTI), meaning what percentage of your income you have to put toward paying monthly expenses, including your car loan, student loans, and other bills; utilize an online calculator for this. Lenders use your DTI to decide whether to extend a loan to you. According to the Consumer Financial Protection Bureau, most lenders want your DTI to be 43 percent or less. If your expenses are sitting at or around 43 percent, you’ll need to trim your expenses to qualify for a loan.

To get an idea of how much you need to save, research the real estate market in your area. Get an idea of the cost of houses similar to ones you would like to purchase and use that number to calculate the down payment you’re looking at. (For example, Dallas homes tend to sell for a median price of $410,000.) Down payments vary among loans, so shop around to see which one is right for your situation and what percentage you need to put down.

Once you know the required down payment, start putting away money efficiently. Begin by moving your savings into the highest rate savings account possible so your money works for you as time passes. Eliminate expenses you can do without temporarily or long-term and divert the funds to your savings. Use passive ways of generating money, such as apps that reward you for walking and grocery rebate apps. Consider refinancing your car or shopping around for insurance to see if you can get a better rate and lower payments. As a prospective home buyer, you need to find ways to minimize all of your expenses.

When it comes to finding the right property, a prospective home buyer needs someone in their corner who can guide them through every step of the process. Once you have your financials in order and you’re ready to take the leap into homeownership, we recommend you turn to a local real estate agent for advice and guidance. A good real estate agent will be able to show you homes that meet your criteria, provide information on market conditions, help formulate an offer, and will help you navigate the entire process.

Debt doesn’t have to hold you back — as long as you have a good plan in place. Assess your situation, pay down debt, save efficiently and get your finances in order to put yourself on the path to a new home.