Adding a mortgage to other debts puts you one emergency away from bankruptcy. Don’t do it! Being debt-free and having an emergency fund saved is the best way to prepare to buy a home with confidence. It takes time to get there, but it’s worth it. These tips will help:

Never get a mortgage that costs more than 25% of your monthly take-home pay. Otherwise, you’ll be house poor and have no margin for other financial goals. Always stay away from FHA, VA, USDA, ARM and even 30-year loans. While they might entice you with zero down payment requirements or a lower monthly payment, they cost you thousands of dollars more in the end and keep you in debt for decades. Instead, get a 15-year fixed-rate conventional loan.

A down payment that’s 20% or more of the home price means you can skip paying for PMI (that stands for private mortgage insurance, and it only benefits the lender). If you’re a first-time home buyer, putting down at least 5–10% is okay—but then you’ll have to pay for that PMI.

On top of your down payment savings goal, you’ll want to save another 3–4% of the home price to cover closing costs (which could include fees related to inspection, appraisal, loan processing, taxes and insurance). Keep in mind, that amount doesn’t include the cost of a real estate agent. Some sellers might agree to pay part or all of the buyer’s closing costs to sweeten the deal, but every situation is different. So make sure you plan ahead.