There is one truly bright aspect to the recent economic hard times. It’s now easier than ever to buy that home you’ve been wanting for less than ever before. It doesn’t require a college degree in mortgage finance or a real estate agent’s license, either. Just be prepared to do a little extra shopping and homework.

Home prices have fallen 15-20% in many areas over the past two years and they are still headed down in some. Many foreclosures are selling for half what they did only a year earlier. But lending criteria have tightened. To get that dream home will require evidence of a steady income and good credit.

Fortunately for buyers, since the home price is so much lower, the amount of income required and what qualifies as good credit are now within reach of millions. Many who were shut out by high prices and the need to come up with 10-20% down can now enter the market. After all, 20% down on $150,000 is a lot easier to come up with than 20% down on $300,000.

It will require more flexibility, though, because the housing crunch has hit different areas in different ways.

In some neighborhoods many homes stand empty, driving prices to lows not seen in a generation. That means it may be necessary to move in now and be willing to live (temporarily) in what looks (now) like a depressed area. But in a few years, all those other homes will be sold and things will look normal again.

For singles, couples, and certain families it’s worthwhile to consider relocating. Look around the country and you will soon find a location where homes are plentiful at low prices. But that means moving there, which might mean moving far from a familiar city or state. On the upside, since so many of those homes have come on the market, owners have moved or are seeking to relocate. That opens up the possibility of employment in that same area.

There’s another major aspect to saving money on a home: the mortgage.

It’s no coincidence that those too are at all time lows and that helps buyers and sellers. The buyer profits from a smaller monthly payment and lower interest charges over time while the seller can offload a house in a market with fewer qualified buyers than in the past.

But there are other elements to lower interest rates that work to the advantage of those trading in this radically altered market. Many other components of purchasing a home are keyed off the basic mortgage interest rate (and the home price).

Mortgage insurance, property taxes, real estate agent fees, and more all move up and down in tandem. Buyers and sellers both can save significantly on costs that only a year ago would have been much higher.

As with any major purchase, it pays to shop around. Even before you find a home that sparks your interest, talk to several different mortgage lenders. They’re all hungry for business now, especially from those with strong credit history. They have to make up for all those losses somehow! Avoid the temptation to rush into the first deal you find. Play it cool and you’ll save big.

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