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Borrowers can monitor home-lending rates. Every Thursday, Freddie Mac officials calculate average mortgage rates by compiling rates from lenders across the U.S. on Monday through Wednesday. Rates can be found at www.freddiemac.com/pmms

Even if your home purchase is months or years away, having good credit history is essential. A few points on a FICO score can mean the difference between a higher or lower interest rate offered on a mortgage loan. Go to www.creditscore.com to monitor your score. If you need help cleaning up your credit, the professionals at www.fixmyscore.org can help.

As soon as you’re even thinking about contacting a mortgage broker, be sure you’ve organized all the necessary documents most lenders require, such as those that prove employment and income. Typically, lenders want two recent pay stubs, two years of tax returns, bank statements, proof of assets, such as 401(k) and trusts, and debts, such as credit card statements. Documents are especially important for borrowers who are self-employed. Having documents ready will speed up the loan process. And take note…in this market, you cannot make an offer without a loan approval letter, so don’t let that dream house slip away. Do your homework and be prepared.

Are you still paying rent? According to Trulia, Over 72% of  the largest U.S. cities have starter homes, condos and apartments  that are becoming more affordable as “owned” rather than “leased.” My suggestion is to find a good lender and see what you qualify for and then compare that with local rents in the areas you like to see if renting is cheaper or not! Go to www.zilpy.com for the cool tool tab to find estimated rents to compare. If you don’t have a lender, contact Dave Trillo at www.PlatinumMortgageNetwork.com and tell him I referred you. They run a top notch lending group.

Buyers interested in purchasing a distressed property…but lacking the funds to fix it up…might want to check out FHA’s 203K loan. Primary home owners (not investment owners) can cover the costs of renovation as well as the purchase price with as little as 3.5% down. More details: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Good news for home buyers! Governor Schwarzenegger signs $10,000 homebuyer tax credit legislation making a move to encourage Californian first time homebuyers and new construction purchasers to buy homes. I urge anyone looking at property ownership to call their tax accountant to understand how this bill will affect them. Read more http://gov.ca.gov/press-release/14712/

As of March 31^st the Federal Reserve will stop buying mortgages from Freddie Mac and Fannie Mae. Why should you care? It means that banks will have to raise interest rates on the mortgages they originate in order to attract private investors, rather than a guaranteed buyer. Get all the info here: http://www.philly.com/philly/business/personal_finance/20100317_Program_s_end_to_affect_interest_rates.html

Extended until Dec 31, 2010, first time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1500 a month for up to 6 mos to help pay their mortgage.  A qualified co-buyer can also participate in C.A.R.’s (Calif Assoc of Realtors) Housing Affordability Fund Mortgage Protection Program & receive $750 a month for up to 6mos. This free protection program received $1 million from C.A.R.’s & an additional $420,000 from N.A.R.’s (National Assoc) housing affordability funds & are available until the funds run out. Contact your Realtor for an application.