Many potential homeowners wonder if it’s the time to buy with low prices, REO's, foreclosures and low interest rates. But determining when it’s right to buy isn't all about the market, It’s about you, the state of your money and income.

There are a lot of people are holding off on buying, even with prices down. They will start the process, and many will even make an offer to a bank for a foreclosed or REO property, but the bank will take up to 90 days to review it and in that time the offer will most likely go away.

Requirements on loans for buyers are much higher than they used to be. You typically need two appraisals instead of one, at least 5% down, and decent credit. While a 620 credit score would have gotten you a good mortgage one year ago, now you need to be into” the 700s to get the best deal from a lender.

If you thinks it's time for you to buy, give yourself time to prepare. Pay off your credit card debt and then leaving your cards dormant for the duration of the underwriting process. Hold off on financing anything else, lenders get nervous when they see inquiries on your credit report.