We’re first-time buyers and are worried about making the wrong decision during our house hunt. Any tips to help keep us on track?

Buying a home, especially your first home, can be an emotional roller-coaster ride: one moment you’re filled with excitement when you find the home of your dreams, the next moment you’re filled with anxiety trying to decide how much to offer. Later on, you might second-guess if you made the right decision. But it’s essential to not let those emotions take over as you make one of the biggest financial decisions of your life.

Knowing the right questions to ask and steps to take before starting your hunt for a house is one way to help keep those emotions in check. Many common home-buying missteps can be avoided by following these five tips:

1. Leave your emotions at the door: Decide where you want to live and which features are important to you. Determine your maximum budget by speaking with a mortgage broker or financial institution and then stay firm, even if a bidding war arises. By making a plan and sticking with it, you will have an easier time walking away from a deal if it’s outside your comfort zone.

2. Read and understand everything before you sign: Agreements you sign in the process of looking for, and buying, real estate — such as a representation agreement with the brokerage that is acting on your behalf and the agreement to buy or sell a property — are legally binding contracts. If you don’t understand something, ask your real estate rep to explain it to you.

3. Be sure you and your representative are on the same page: When working with a real estate agent, it’s important that both of you have a mutual understanding of what services he or she will be providing to help you buy or sell a home. Have a thorough conversation about the details and then make sure they are documented in any agreement you sign.

4. Know your tolerance for risk: In a hot market, you may be tempted to submit an unconditional offer to get a leg up on the competition. But consider whether you’re comfortable with that risk. Can you afford to fix a major issue with the home that an inspection may have detected? Or potentially lose your deposit? Or face legal action if your lender denies your financing and you can’t complete the deal? If not, then waiving conditions may not be the way to go. If you do end up waiving conditions, be sure you have a contingency plan in place to manage any financial risks should they arise.

5. Be flexible and have a backup plan in place: Real estate transactions can happen at lightning speed, and plans might have to be adjusted. What if your moving dates don’t line up? What if you have unbudgeted repairs? Think ahead and have a contingency plan in place.

An educated consumer is an empowered consumer. That’s why RECO will be visiting 13 Ontario communities this fall and into 2017 to encourage home buyers and sellers to “Be Home Smart.” Drop by our booth at Canada’s Bridal Show this weekend or visit reco.on.ca to find a full list of events we’ll be attending.

Joseph Richer is registrar of the Real Estate Council of Ontario (RECO). He oversees and enforces all rules governing real estate professionals in Ontario. Email questions toaskjoe@reco.on.ca . Find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/RECOhelps .