Few things are as exciting as buying your first home. Whether you’re just getting started in your career and family or whether you’re making a lifestyle transition, taking the plunge into a new home is one of the smartest things you can do, too. The time is especially good right now for first time home buyers to take advantage of what’s going on in the home mortgage market, too.

Before you get too far, there are some important trends you need to be aware of and take into account when buying your home:

1. You’re probably going to need a sizable down payment. The days when you could get a new home with a three percent down payment are, for the most part, a thing of the past. Today, you can expect to pay as much as ten percent down on your home.
2. Lenders are being more picky than ever. The so-called “Credit Crunch” is a stark reality, and it’s not over yet. Lenders are likely to be much more picky about things like proof of income, employment history and, of course, the all-important credit report. Make sure you’ve got all of your ducks in a row, from fixing errors on your credit report to a verifiable income.
3. Home prices are, for the most part, still continuing to slide. The national median home price has fallen more than a quarter since 2006. No one can be sure when they’ll stop, although some experts suggest that the brakes are already on. This matters to you because, if prices continue to drop, you can find yourself owing more on your house than what it’s worth on the market. Make sure the home you choose is one you’re in for the long haul, and don’t worry: home prices will, eventually, come back up.
4. In some states, such as Arizona, California, Florida and Nevada, there are a lot of foreclosed homes on the market. At the end of last year, nearly half of all home sales were “distressed” – either foreclosures or short sales. This benefits you on two levels. First, you can consider buying one of these homes, often at a much lower price than a home that’s not distressed. Second, this phenomenon puts pressure on the rest of the market, forcing traditional sellers to cut prices in order to stay ahead. In many places, it’s a buyer’s market.
5. Don’t forget that your local housing market is, above all else, local. If you want the best house for the best price, you need to study the local market. Check out the real estate listings, but do some other research, too. Find out about foreclosed and bank-owned homes. Even if you’re not interested in these kinds of properties, you can use that knowledge as leverage during your mortgage negotiations.

No one knows for certain what tomorrow will bring. There are signs that housing prices may soon rise, although low interest rates are likely to stick around for a while. We may very well be in a sweet spot of sorts, an ideal time to buy that first home you’ve been dreaming of.