Start with the house piece first. Place and pin it onto the prepared background fabric about 1in. to 1 1/2in. from the bottom edge of the fabric. The top of the house piece is left open and unbasted. Using the applique stitch, stitch around three sides of the block, leaving the top of the house unstitched and unbasted and starting on one side. When you have finished stitching the piece, you can remove the basting stitches and pull the freezer paper out.
A few words about freezer paper applique that you might find interesting.
The freezer paper can be used again and again. If you iron it onto fabric and feel that it is not in the right place, you can remove it, replace it, and iron again. This re-use is also handy if you are doing a lot of one shape, such as leaves. You can do a few leaves, take the freezer paper out and re-use the shapes. It can mean a lot less tracing and cutting! Now let's get back to the appliqueing.
Place the roof section onto the block. Pin it where you want it. It should overlap the house piece by about a 1/4 inch. Now pin the chimney pieces in place, tucking the unstitched bottom of the pieces under the roof section by about 1/4 inch. The chimneys will be appliqued before the roof section, so do them next.
Now continue to place the rest of the pieces onto the block as desired. Applique them in place. Don't forget to remove the basting stitches and freezer paper when you are about an inch or so from where you started stitching the piece. Then continue to applique the rest of the piece.