Designed to assist prospective buyers in making such important decisions as whether to buy a new or older home and within what price range, the guide provides information on the purchase process. Discussion of the purchase process covers the life-cycle costs (recurring homeownership costs that must be met every month); selection of a home; evaluation of prices; things to consider when buying; earnest money contract; borrowing money; types of loans (conventional, Veterans Administration-guaranteed, and Federal Housing Administration-guaranteed); closing the transaction; and the warranty deed. The more common closing cost items are briefly discussed: prorations of property taxes and insurance; fees for real estate broker, loan origination, appraisal, assumption of existing loan, recording and transfer, and survey; discount points; credit report; prepaid interest; private mortgage and hazard insurances; reserves deposited with lender; title insurance premiums; and termite inspection. Appended are a summary of items covered on the disclosure form, a list of items to consider when examining a pre-owned and a new house, a checklist for custom building, and a glossary of 91 terms which may be of interest to the novice homebuyer. (NQA)