Buying a home is a very big investment for most people. Its a big decision to make. A booming real estate market and easy availability of finances is making this dream come true for many people. Owning a home is not just a good investment, but it also offers other advantages such as tax savings, limited monthly costs, forced savings and, most importantly, the feeling of being independent. There are many prerequisites for owning a home: a stable income, a good credit report, some cash for a down payment and up-front fees, the ability to get a mortgage and, most importantly, the house.

The home buying process is rather complicated, especially for a first time buyer, and may take several weeks. The first stage in the process is to identify a good house. Consider the location, the neighborhood, facilities both in the house as well as nearby, the amenities in the house, proximity to the workplace or the school, the kind of home you want, and many other factors. You can get the help of a real estate agent for this. Newspaper columns, the Internet, for sale signs, and friends and family members are also some of the most common sources of information.

The next stage is to identify your credit rating. Is it good enough to attract a good mortgage rate easily? Plan your finances to cover the mortgage payments every month, work out how much you can really afford (make a budget), determine your net worth, find a good mortgage agent, get a pre-approval for the mortgage, make an offer to the seller, finalize the deal, exchange contracts and title for the house, and finally you can move in. The offer documents generally contain the selling price, any concessions desired, financing contingencies, home inspection contingencies, a clear definition of what is contained in the sale, and the deposit amount that is tendered with the offer. You would need the help of a lawyer, a home inspector, an appraiser, an insurance broker, a land surveyor, and, if you are building or rebuilding the house, a builder or contractor.

The formalities which need to be completed before the final closing are the settlement statement, contract, loan papers, title insurance, homeowners insurance, the title or deed, and the down payment and closing costs. Before signing the final contract, check the kind of disclosures offered by the seller, home inspection reports, the real estate agents title search services, and the other costs involved in the whole process. Mortgage loan insurance application fee and premium, appraisal fee, deposit, down payment, home inspection fee, land registration fee, property insurance, title insurance, legal fees and disbursements are some of the general up-front costs.