Buying a home is a common undertaking for many Americans, but it’s also one of the most complicated – not to mention costly – purchases adults will ever make. It’s important to understand these 10 essential terms so you’re ready to make smart decisions with your money.

The tallest hurdle to buying your first home will be saving for the down payment. To avoid having to purchase private mortgage insurance, you’ll likely need to put down at least 20% of the purchase price, which will probably mean tens of thousands of dollars.

As exciting as it is to buy a home, the lead-up can be a dizzying experience, especially for first-time buyers. But don’t fret. Breaking down the process into smaller steps can help ease your anxieties. Here’s a look at the kinds of questions you’ll want to ask yourself, as well as a few other practical tips.