If you’re planning to buy a home or refinance your mortgage, you might be a bit apprehensive about the mortgage application process. After all, media reports on the credit crisis and on how banks have tightened their purse strings can make the process seem daunting.

While it’s true that mortgage applicants face challenges not present at the height of the real estate boom, there is some good news you may not be aware of: 30-year fixed rate mortgages are now in the 5 percent range, or below--some of the lowest rates in over 30 years. First time homebuyers may qualify for federal tax credits*, and some states (such as California) have instituted tax credits as well to stimulate local housing activity. So the news is very promising.

There are things you can do now to ease the application process and increase the odds of finding the right mortgage. Here are some tips:

Can you snag a bargain by buying a short sale? Short sales—when homes sell for less than the outstanding mortgage—are all the rage these days. And for good reason: They present savvy buyers with the opportunity to save thousands of dollars off the fair market value of a home.

Depending on your market, lots of short sales may be available. "When I look at the MLS, over half of the properties are short sales," said Jeffrey Kahn, an agent with CENTURY 21 Hansen Realty in Wilton Manors, Fla. "Buyers can really snag a bargain if they know what they’re doing and if they have patience."

Indeed, patience is the biggest asset any short sale buyer can have. That’s because the bank holding the mortgage has the final say on whether the deal will go through. After all, the bank needs to agree to take less money than it is due. And banks today are being bombarded with short sale applications.

Experts say it can take 30 to 60 days—or more--before you get an answer from the bank and know that the deal is a "go."

But a patient buyer can be rewarded. Kahn said he’s seen buyers pick up properties for 30 to 35 percent off fair market value.

Short sales can be good for sellers too. A short sale typically blemishes your credit report for less time than a foreclosure.

If you’re a buyer looking for a deal, or a seller trying to avoid foreclosure, call our office. A CENTURY 21 Professional Champion is here to assist you.