Make an offer

Once you have found a home that meets your needs, it is time to make an offer on property. You will already know most you can spend from pre-approval process, and you probably will have your own ideas on what property is actually worth. In addition, your real estate agent can guide you through negotiation process and offer procedures. A copy of your pre-approval letter will be presented as part of written offer. This will ensure seller that your offer is legitimate.

Negotiation process

If seller accepts your first offer, congratulations. Your negotiations are over and you're ready to start preparing for your move. More likely, however, is that seller will come back with a counter-offer. This negotiation process can go on for a short or long amount of time, depending on factors like motivation of seller, local real estate market, and a host of other factors. The real estate agent will be a good guide through negotiation process. After all, he or she will have been through this process many times before.

Provide copy of Purchase and Sale Agreement to mortgage broker

After negotiation process has been completed, you will need to present your mortgage broker with a copy of Purchase and Sale Agreement for home.

Work to close mortgage loan

After presenting Purchase and Sales Agreement, you will need to work with mortgage broker to ensure you meet all conditions required for closing of mortgage loan.

Home inspection prior closing

Prior to closing, you will want to make sure to have a thorough home inspection performed by a qualified and certified home inspector. A home inspection will protect you from flaws in construction and condition of home that are not obvious to naked eye. Home inspections can uncover things like foundation cracks, termite infestation and other home quality issues.

Hand over down payment

After home inspection has been performed and report has come back clean (or all items uncovered have been repaired), it is time for buyer to actually hand over money for down payment and sign loan documents.

Collect house key

After closing of loan, fun part of home buying begins. Your real estate agent will hand over keys to your new home and you can actually move in and enjoy your beautiful new home. Welcome to moving day!

6. Buy land, split it and sell it. Advantages: It is simpler than most real estate investments, with possibility of great profits. Disadvantages: It can take a long time, and you have expenses, but no cash flow while you wait.

7. Boarding houses. Advantages: You can get a lot more cash flow renting a house by room, especially in a college town. Disadvantages: You can get a lot more headaches renting a house by room, especially in a college town.

8. Commercial real estate. Advantages: Long term triple-net leases mean little management and high returns. Disadvantages: Tough market to break into, and you can lose income on vacant storefronts for a year at a time.

9. Buy, live in it, and sell. Advantages: The new tax law means you can fix it up, and sell for a big tax-free profit after two years, then start process again. Disadvantages: You have to move a lot.

10. Speculation. Advantages: Buying in path of growth and holding until values rise can yield large profits, especially if you buy low to start. Disadvantages: Prices aren't that predictable, you have expenses with no income while you're waiting, and transaction costs can eat much of profits.