• At first they should estimate how much they would be able to spend for the house purchase, i.e., they should figure out the price range in which they would be able to afford a house.

• While buying a house buyers should be aware of their rights. There are many laws which have been structured to protect rights of buyers like the Fair Housing Act and Real Estate Settlement Procedures Act. These laws have been developed to safeguard consumer rights and to deter discrimination on the basis of ones race, color, religion or family status.

• Many people nowadays opt to take a mortgage for financing their home purchase. It is of utmost importance to select the appropriate loan program which would suit their needs and requirements. The main thing is to shop, compare and negotiate while looking for a mortgage loan.

• Select a real estate agent to locate the home as per your needs. The real estate agent you select should have enough experience to understand your requirements and locate the home accordingly. In your search for a good real estate agent look for an agent with designation of GRI from National Association of Realtors.

• Next you need to decide what your offer price should be. By looking at the comparable sales in the public records and multiple listing services you would be able to get an idea of the price range in which homes are selling in the region & thus appropriately base your offer price.

• After selecting the home to purchase you need to make a purchase offer. Make sure you are aware of the contingencies to be included in the offer, the earnest money to be deposited, which will pay for the inspection & terms for cancellation of the purchase offer.

• Next step is quite important. It is home inspection. Apart from appraisal, termite inspection, you as a buyer should be allowed to have a professional go through the house to locate any potential problems.

• Buying a home involves many people such as escrow or Settlement Company which coordinates the whole process between you and the seller. You will need to decide beforehand on who will be paying for the fees, you or the seller.

• Signing the papers is the last step but make sure that you read all the points before signing at the time of closing. Look closely at the settlement costs you are being charged and inquire if any amount is more than normal.

What buyer should expect on the closing day

On the closing day you will be required to provide the paid homeowner's insurance policy & receipt which will show that the premium has been paid. Money you owe to seller like, prepaid taxes, remainder of down payment will be listed by the closing agent as well as the amount seller owes to you such as prepaid rent and unpaid taxes. At the time of closing seller will also provide proof of any warranties, inspection, etc.

After clearly going through all the documents you should sign the mortgage note and the seller will sign the deed to transfer the title to the house. After that you will have to pay all closing costs to lender's agent and in return he will give you a settlement statement listing the items which you have paid. Next the deed & mortgage will be recorded with the Registry of Deed & you will become a homeowner.