"Can I really afford a home?" "What is the right home for me?" How will I look for one?" "Will I buy through a broker?" These are just a few questions that a jittery homebuyer would ask prior to searching and eventually buying a home. In order to make home buying process easier, the following is a 10-step process to aid the homebuyer in searching for that "perfect" home.

Step 1 - Know what you need
Any purchase action starts with a need. When we need something, we go through a process of looking for it and eventually owning it. In buying a home, the first step starts with an honest assessment of what you really need. Include also the needs of the entire family so that it will be easy for you to arrive at the conclusion of what is most important for everybody.

Assessing what you need is a very important step toward owning a home. Unfortunately, many homebuyers start by looking at homes and trying to fit the homes with what they need - only to end up with a home that they are not happy with. Discuss your needs with your family. Ask your children on the study and living spaces that they would want in the new home. If the wife loves to cook, then a big kitchen is one of the top priorities. This process of assessment of needs would require many nights of discussion and planning.

Step 2 - Know the type of home
After assessing the required living spaces for you and the entire family, then you have to select the type of home that will satisfy these needs. You have many choices:

Single detached home - This home is where you have your own lot with your own house on it. You may even have enough space for a garden that you can cultivate in the future. On a specific location or subdivision, single detached homes are generally the most expensive.

Duplex - These are houses that come in two units that are bounded by a common firewall. It is a cross between a single detached home and a town home. You may not be able to choose the color of the roof of the house for it has to be the same as your neighbor.

Townhouse - Usually located in areas wherein the cost of land is high. These are built in multiple units beside each other and share a common firewall. Advantages include proximity to various infrastructures like malls and hospitals. Public transportation is usually near townhouses.

Condominiums - Located in prime areas, you enjoy absolute ownership of your unit and co-ownership of the land and the common areas. Facilities like pools, function rooms and the like are usually located in one of the floors. Condominiums are located near offices and shopping districts.

Step 3 - Know your budget
Knowing your budget requires a thorough analysis of your finances. If you are a family then you might have to list down with your spouse your total income and expenditures to know how much you can afford for a home. If you are to take a loan from a bank, be realistic as to how much money you can afford for a home. If you are to take a loan from a bank, be realistic as to how much money you can allot for the monthly amortization. As a general rule, your monthly payments should be about 30 to 40 percent of your combined monthly gross income. You may have to give up some of the luxuries that you are used to in order to make those monthly payments.

Step 4 - Consider paying in cash
There are many homebuyers who pay in cash. There are individuals and couples who have saved enough money to be able to afford a home that they want. Some sell other properties including real estate for them to be able to raise enough money to get the property that they really want. If you can pay it in cash, then go ahead and do it. If not, then you have the option of borrowing from a bank or a financial institution.

Step 5 - Search for the right location
Let the weekend house hunting trips begin. Once you have decided on the home that you need and can afford, you may now start to look for locations where you possibly want to live in. Do not reject a location outright just because you have heard of bad publicity about it. Go there and confirm the facts yourself. Many people priorities a location based on its proximity to schools, malls, offices and public transportation. Others want to be far from urban centers to be free of noise and air pollution. It should only be you who will decide where you want your house to be located based on your priorities. If you want your children to be near their schools, then you may have to travel more to go to your place of work.

After you have chosen the location that you want, then it is time to look for the houses that are available in that location. Try to look and check out as many properties as you can.

Step 6 - Look at your purchase options
After you have decided on the location, you may want to look at your purchase options. These are a few of the choices:

Finished Homes - Duplexes, townhouses and condominiums are most of the time built by a developer and all you have to do is move in to these units. If there are some design elements that you want to be changed, then you may have to do it yourself. There are also many pocket developers who build single detached residences that are sold complete with all the necessary amenities and fixtures. You may also want to consider these.

Design and Build - There are "one stop shop" builders who can do the design and construction for you. All you have to do is to tell them the layout that you would need. You also get to select the finishing materials that go with your home. Another option is to contact a home designer and then after the design is made, ask a builder to construct the home for you.

Step 7 - Buy or build?
If you decide to buy a completed home, then all you have to do is assess whether it fits your needs, check its quality and then pay for it. If you want a specific location but could not find a house for sale in the area that would satisfy your needs, then you may buy a vacant lot and have your designer and builder construct your home. Each of these options offers advantages as well as disadvantages.

Step 8 - Consider all options
Once you have selected the location and the type of home that you want, you may want to make a tabulation or checklist of all the features of each home that you are considering. You will eventually arrive at the top choice then after this it is now time to calculate the total costs of the purchase.

Step 9 - Calculate the cost
The contract price of a home is usually not the total price that you have to pay for. In order to transfer the ownership from the seller to the buyer, the parties involved have to pay taxes. These additional expenses, which are usually paid by either the buyer or seller include capital gains tax, documentary stamps, transfer tax, registration fees, VAT, withholding tax, etc. Each transaction situation is different and it is best to consult your real estate professional regarding this matter.

Step 10 - Make the purchase
Before making the payment, make sure that all of the necessary papers of the property are in order. This means checking the authenticity of the title, the geodetic coordinates, etc. This process is not well known by the average homebuyer so it is suggested that you ask the help of your real estate professional to make sure that everything is in order.

If you borrow money from the bank, then you would also have to sign documents in order that the mortgage can be properly annotated in the title.

Final Note
It is always best to approach the home buying process carefully. A home is not a commodity wherein one can afford to make a mistake in the process. The worst thing that can happen is that you get stuck with a property that you do not really need which is compounded with legal problems. Always seek the help and advice of a real estate professional of your choice. As we always say: Know what you want, what you need and what you can afford.