The homebuying process may at times seem rather complicated, but if you take things step-by-step, you will soon be holding the keys to your new dream home!

Nine steps to buying a home:

• Figure out how much you can afford
• Know your rights
• Shop for a loan
• Learn about homebuying programs
• Shop for a home
• Make an offer
• Get a home inspection
• Shop for homeowners insurance
• Sign papers

Step 1: Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, downpayment and the interest rate. It is best to visit a lender to find out what home is in your range.

Step 2: Know your rights
Check with government housing Web sites for the following:

• Fair Housing: Equal Opportunity for All
• Real Estate Settlement Procedures Act (RESPA)
• Borrower's rights
• Predatory lending

Step 3: Shop for a loan
Save money by doing your homework. Talk to several lenders, compare costs and interest rates, negotiate to get a better deal. Consider getting pre-approved for a loan, it will save you time and effort in the long run.

Step 4: Learn about homebuying programs
Each state, including California has special Homebuying programs. FHA loan programs offer lower downpayments and are a good option for first-time homebuyers, but are limited to a certain price range of properties.

Step 5: Shop for a home
When you get ready to actually start your shopping, there are a few things you should do:

• Choose a real estate agent
• Create a Wish list of the features do you want.
• Create a " Home-shopping checklist" – take this list with you when comparing homes so you can evaluate what you see side-by-side.

Note: If you choose a home in a neighborhood with a Home Owners Association (HOA), be sure to request a copy of the HOA packet, so you can review before closing.

Step 6: Make an offer
Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.

Step 7: Get a home inspection
Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.

Step 8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.

Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!