The big news last week is the extraordinarily low mortgage interest rates. And this time, the rates really are historic, the lowest since the 1940s. Combined with lower housing stock prices, this really is the best time ever to end your career as a house hunting fence sitter.

According to the latest word from Freddie Mac, the Primary Mortgage Market Survey shows the traditional 30-year fixed-rate mortgage averaging 3.94%. A year ago the average interest rate was 4.27%. A 15-year fixed-rate mortgage came in at an average of 3.26%. Last year, the rate was 3.72%.

Some potential buyers are still waiting for that stupendous “deal,” but we see this level of interest rates just that deal. Combine that with an amazing selection of homes, and you have a remarkable opportunity to buy or refinance.

Before you begin your search, be prepared. Lending institutions have tightened there qualifications for a loan, but the money is there for organized buyers.

Check your credit rating first. Lenders look for a rating of 660 and above, but that can vary from lender to lender. The higher your credit score, the lower your interest rate.

Pay down any debt you have now, and pay your bills on time. Lenders want to see that you are a cautious and dependable spender with the ability to repay the loan. This lowers your debt-to-income ratio.

Don’t borrow any more money. Taking out another loan skews your credit score. You really don’t need that new car right now.

Stay in your present employment position. Job hopping will reduce you ability to get a loan.

Save. The higher your down payment, the better interest rate you’ll get.

With all of these preparations, get pre-qualified with a lender. As you begin your home search, pre-qualification shows you are serious and sellers will take your offer seriously.

Now you’re ready to take advantage of these incredibly low interest rates to buy your dream home!