When buying a home - and now is definitely a great time if you have a solid credit score and use a lender not bogged down with subprime loans - there are a couple of baby steps you should consider.  First, choose an agent.  Interview the agents you’ve met, ask friends or relatives for a referral and check references!  Being comfortable with the person who is representing your interests is very important.

Secondly, know what you can buy. Contact a handful of reputable lenders and learn what kind of loan programs and rates they offer.  The lender will ask you for specific information, including your social security number, to check your credit.  That credit score, along with your debt to income ratio, employment and rent or mortgage histories are all important in qualifying for a loan.  TIP: When contacting lenders, limit this search to a 10-day window.  If you go outside that window, your credit score could be negatively impacted.

Third, define your search.  Meet with your agent before touring homes to discuss features and needs of the home you want.  Be sure you’re not looking for a home in a price range you can’t afford or you’ll be disappointed when you step back to reality.

Finally, be ready to buy when you find the perfect home, but be patient if it takes a little time. Buying a home today actually could be easier than just a year ago because we are in a Buyers’ Market in most of the country.  The inventory of homes on the market is greater than six months, giving the buyer a negotiating advantage. In addition, CBS news reported this morning that for the first time since 1950, home prices are dropping.  Geeky Weekly explains how the price in homes is slumping and looks to the bigger picture of our nation running on a credit-structured economy.

For a buyer, this is a golden opportunity.  For a seller, buckle up and hold on - it could get bumpy!

Photo from MSNBC: Existing home sales see large drop in July.