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     The first step in buying a home is examining your finances. Can you afford a home? As a rule, no more than 28 percent of your gross monthly income should go to housing payments. Realizing this should help determine how 'much house' you can afford.

     Also, look at your debt load. It's difficult to make house payments if you have large credit card bills, student loans or car payments. You also will need a cash reserve to fix unexpected repairs -- there will be no landlord to call when the water heater breaks.

     Get a credit report on yourself and clean up discrepancies. This will save you time when your loan application is being processed.

     Next, go to a real estate agent or bank and ask to be "pre-qualified" for a mortgage. They will want information on your assets and liabilities, as well as your monthly income. They also can tell you how much you can afford. If you have your account numbers and other necessary information, you may be "pre-approved" for a loan, meaning the mortgage company believes you are likely to be approved -- a good thing to have when negotiating with sellers.

     After you've pre-qualified, make lists of your housing needs and wants. Find a real estate agent and talk to him or her about your ideas. An agent will be able to find listings fitting your description. Or, if you want to shop on your own, start searching Homes In Palm Springs, the real estate classified ads and home magazines, and drive through neighborhoods.

     The old real estate adage of "location, location," is true. Most people, when looking for a home, choose a neighborhood first. It is imperative that you find a comfortable neighborhood. Are the families young or old, single or retired? Drive through day and night; Is it a high traffic area? Are parks, pools and other amenities available? Are the schools good? Is there a homeowners' association? If so, do you want that?

     The average home buyer tours between seven and 10 properties before making an offer. Some look at as many as 30. Go slowly; this is likely to be one of your life's biggest purchases. Once you've found a home, examine it carefully before making an offer. Are there any things that need to be replaced? If so, you may be able to work this into a contract.

     When the time comes to make an offer, be specific. If you want the appliances, say so. If you've hired a buyer/broker, he or she can help you with deciding your offer amount. A real estate agent can also help, but he or she must keep the seller's best interest in mind -- agents, after all, are paid by the seller.

     Once you've made an offer, it's presented to the seller, who may counter offer. You can accept or counter offer, and so on.

     Once an offer is accepted, an earnest money deposit is taken and escrow is established. Escrow is a third party who ensures that all requirements in the process are met, including title search, lender required assessments, and payment for closing costs.

     Now, it's time to apply for a loan. California has a number of programs available for first-time home buyers. Ask your loan officer if you qualify. Such programs are: CHFA, the California Housing Finance Agency, which guarantees loans at lower rates; MCC, the Mortgage Credit Certificate, which helps reduce taxes; and the CHB, Community Home Buyers program, which helps lower down payments. Your loan officer can also tell you whether these programs can be used in conjunction with various loan types, or VA- or FHA-backed loans.

     You also must decide what type of mortgage you need -- fixed rate, adjustable rate or a graduated rate mortgage. Depending on the amount of time you plan to occupy the house and the interest rate at the time of purchase, you may consider any of the three. Talk to your loan officer about this.

     You will likely receive conditional loan approval, pending the outcome of the loan company's home assessment. At this time, you may want to hire a home inspector to examine the house.

     After the loan is approved, you will go to "closing." Paperwork will be signed, the check written and keys handed over. Congratulations! Within a few weeks, expect to receive several documents, including the recorded deed, title insurance policies and mortgage documents from escrow.