1.) I think there are a lot of people out there who got hurt back in the real estate crash who think they can no longer qualify to buy a home and take advantage of the new, more affordable home prices.
Did you know that you can qualify for a new FHA home mortgage three years after completion date of foreclosure…. and two years after a Chapter 7 bankruptcy discharge date? Of course, there are other qualifications, certain credit criteria and income requirements, but with the fact properties are so much cheaper, you can get back in the game at an affordable price relatively quickly, and in some cases, at a better rate than what you would rent a similar property for.
2.) A lot of first-time buyers don’t realize how the amount of the property taxes and assessments affect the affordability of a property. You could have two similar $150,000 properties and think they’re both in your price range, but in reality, one may have higher taxes or assessments that would make it outside your price range. It is important to consider not only the purchase price, but all the other factors as well when evaluating a property.
3.) Housing prices have increased in most neighborhoods, which has taken many homeowners out of their negative equity situation and allowed them to sell their home more easily. Despite this, there is still a relatively low inventory of property available relative to the number of potential buyers out there. This has created a competitive environment for buyers, with many properties selling quickly — often with multiple offers.
Contract negotiation becomes a very important part of the home buying process. It’s important that you have the right broker working with you who will move as quickly as some of these transactions demand.
4.) Understanding the difference between s pre-qualification and pre-approval is crucial. A pre-qualification typically only involves pulling the credit and gathering verbal information provided by the buyer, with no deeper analysis of the borrower’s true financial history. A pre-approval is a more thorough review with a full application.
In a competitive market, you want to have a pre-approval. A pre-approval shows a seller that a deeper analysis has been done, and that it is not likely that any surprises are going to come up.
If at all possible, send your loan officer a copy of the listing for them to write 
up a specific pre-approval for the property you’re interested in. This shows that not only an analysis of the buyer has been done, but also an analysis of the property.
5.) Get a home inspection. Always. People sometimes think they’re mechanically inclined and Mr. Fix It, but I always recommend an inspection. I’m sure your “cousin Jimmy” is a great plumber and may know a few things about what can go wrong in a home, but a licensed inspector is trained to find defects that may not be immediately visible to an untrained eye.
For most people, buying a home is the most expensive purchase they’ll ever make in their life. And therefore, you owe it to yourself to make sure you know what you’re getting into and if there are any potential issues.