For those of you lucky enough to be in the market for a new home, whether as a first time homebuyer, or looking to upgrade to a larger home, your timing couldn’t be more perfect. Real estate values have plummeted to an unforeseen low – that is bad news for sellers, of course, but it is spectacular news for potential buyers, who have everything to gain by getting in while prices are low.

If you have good credit and your finances are in order, then you may not want to wait much longer to find your dream home. People who might be waiting for the market to hit the bottom thinking that home prices will still come down may be left holding the bag, as some areas have leveled off and have been at the same place for months, while others have already started to inch up in price a bit.

What is the best piece of advice for home buyers today? Do your homework!  If the last few years have taught us anything, a buyer should be very cautious and thoroughly understand every aspect of the mortgage they will be obligated to pay.

The absolute best course of action is to seek out a reputable lender and get pre-qualified before shopping for that first house. Most people tend to do the opposite – shop for a home and then try to find a mortgage after they have signed a contract, which can lead to financial pitfalls.

It is best to go house-shopping knowing exactly how much house you can really afford, so “shop the mortgage first, and the home second.”  Use the experience and expertise of your lender’s advice serve as a guide to what you can afford, so there will be no surprises.

Another thing to keep in mind while lender shopping – mortgage rates are very attractive right now. The waiting game, just as with house prices, may cost you if you wait too long. Buyers should consider the interest rate as part of the purchase. If mortgage rates were to rise, it would more than negate any further decrease in the home’s value – if that ever does happen. The combination is the key – current low home prices and today’s low interest rates.

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