Home Prices and Mortgage Rates Hit Record Lows - Now is the Time to Buy

Calling all home buyers. If you've been sitting on the fence about buying a home, and trying to decide if you should buy now or wait until later, let me offer the following points:

1. Mortgage rates on 30-year fixed mortgages just hit their lowest point since 1971.
2. Home prices in most cities have reached their lowest point in decades. *
3. You can still qualify for an $8,000 tax credit when you purchase a home.

* In some cities, home values will continue to fall for another year or two. In other cities (that did not have a big bubble to start with), values might be hitting the bottom.

It's a Good Time to Buy, If...

I've just given you three good reasons to buy a home right now. But there's one big caveat we haven't touched on yet, and that's mortgage qualification. This is the number-one obstacle to home ownership right now. In fact, it has always been the primary obstacle, but with stricter lending standards the hurdle is even higher.

So let me qualify my opening statement. Right not could be a great time to buy a home if you have the following:

• A good credit score, ideally over 750
• Steady employment over the last two years (and for the foreseeable future)
• A manageable level of debt
• Some money set aside for down payment and closing costs

Do you have these things going for you? If so, this could be a very good time for you to buy a home. You'll have plenty of inventory to choose from, you should be able to get a very low interest rate on your mortgage loan, and you might get a credit of up to $8,000 on your next tax return.

The only real downside is that home values will continue to drop in some areas, especially in places that had a big real estate bubble to begin with (i.e., California, Florida, Nevada, etc.). But if you plan to buy a home in a city that didn't crash as hard over the last couple of years, then you can probably avoid the risk of continuing depreciation. In fact, many of these "level" housing markets have already hit bottom and are now recovering.

It doesn't get much better than this, folks! If you're on the fence about buying a home, you should realize that it's a great time to buy right now.

Haven't I gotten your attention yet? I hope so. If you're wondering where to go next, or how to begin the process, you can start right here.