If you are thinking of buying – or even refinancing - a home, this year has the hallmarks of a great opportunity.  A recent report found home prices at a 9 year low, meaning homes are a bargain today. Plus, the large inventory of “for sale” properties gives you plenty of choices. Finally, interest rates have fallen to historic lows, further enhancing your ability to afford a home.  

Even if you are a “move up” buyer who needs to sell an existing home, you can benefit from today’s low prices.  While you may get less for the home you’re selling, you’ll also save a lot of money on the home you are buying. Proportionately, you will be saving more money.

If you already own a property, 2011 could be the ideal time to refinance. About half of all mortgages are fixed at significantly higher interest rates.  Even with the cost of refinancing, a lower interest rate can save you tens of thousands of dollars in the overall cost of a property. Plus, you can benefit from a lower monthly payment, freeing up cash for other important items in your budget.  
If you’re thinking about buying a house or refinancing your loan, you’ll want to know each step of getting a mortgage. Here’s a primer:

1. Pre-qualify: Before you go shopping, meet with a lender to find out how much home you can buy.
2. Apply: Once you’ve found your dream property, fill out the application and provide the lender the first round of documents.
3. Information gathering: Help your lender compile and verify your information, possibly supplying additional documents.
4. Loan processing: At this point, wait while your documents and the property’s background are reviewed for accuracy and completeness.
5. Underwriting: You get a red light or green light on the loan. 
6. Pre-Close: Get prepared while your mortgage broker finishes up the final details and pencils out closing costs.
7. Close:  Congratulations! The loan goes through and you’ve got a new mortgage or home.