The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves plus your borrowing capacity.  If you give a real estate agent some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you.  Most lenders — banks and mortgage companies — offer limited choices.

 

Once you know how much you can and want to invest, the next steps are to:

 

1) Choose a property

2) Negotiate

3) Due diligence

4) Obtain financing 

5) Closing or settlement.