According to a study by Apartment List, 89 percent of millennials want to own their own homes. Unfortunately, 69 percent of them say they will have to wait for 20 years to make this dream a reality. Homeownership has long been a dream for many Americans of all ages. However, thanks to the rising costs, affording your dream home has become much more complicated. Whether it is the perfect penthouse in NYC, a large family home in the suburbs, or building your dream home from scratch, financial planning for the perfect home takes years of dedication – and the right approach to your finances.

Before you can make such a sizable purchase, you need to know your financial position. Can you afford to buy your first home? Even if the answer is no, having a financial health check helps you map out your route to being able to afford your first home. To start with, list out your financial assets like savings, which can be used towards your home’s purchase. It is important that you also include any continuous liabilities, including recurring debt or a poor credit score. A less than good credit score impacts your home financing options, including your eligibility for a mortgage and the rates you may be offered. In short, it plays a crucial part in your ability to finance your dream home.

In most cases, homebuyers need to deposit at least 5 percent of the sale price before they can buy their dream home. To gain an accurate idea of what that looks like, check out real estate platforms in areas you like to see what the current prices are. Also, look at your current budget, including income sources, before working out how much you can afford to pay towards a mortgage each month. Don’t forget to account for the current mortgage interest rates and your credit scores. A mortgage calculator can help you with this. Meanwhile, a quick check of online mortgage lenders at Crediful.com can give you an idea of the different mortgage products available, average interest charges, and eligibility credit scores.

A common thing most people struggle with when looking to buy or build their dream home is gathering enough for a downpayment. This is where a moving budget comes in useful. Having a financial map lets you visualize where your money is going every month – and what you can change. Using mind mapping helps you organize your information in the most productive way possible. For instance, if a significant portion of your income is going towards utilities, it may be time to revisit your choice of utility supplier.

The key to this is doing it in advance of your plans for a home so that you have time to adjust for the benefits. The difference here is that your financial map should encompass all areas of your life, including your retirement, savings, and other financial goals (like buying a home in the next year).

Buying your dream home is a great lifelong investment, but it can be an expensive one. It is most likely to be one of the most costly investments you make in your lifetime. By spending time planning ahead and getting the right information for your financial situation, you can make an informed decision when it comes to financing that dream home – one you can sustain comfortably.