buy a house

It's a can't-win situation: The very process of shopping around for a low interest rate on a mortgage can adversely impact your credit score and cost you the cheaper loan you're seeking. That's because each time a lender pulls your credit report, it shaves a few points off your score.

If you're looking to score a great deal on a house, you may want to wait a bit longer: U.S. home prices dropped 3% in the first quarter, their sharpest quarter-over-quarter decline since late 2008, according to real estate tracking service Zillow, which now says prices won't begin to rebound until at least 2012.

For generations of Americans, home ownership has been extolled as a sound investment and source of moral virtue, stability and community. Renting was seen as anathema, a distinct second choice. But in the wake of the real estate collapse, those long-held assumptions have been called into question.

If you're trying to decide whether it's time to consider buying a house, the best clues can be found in the new and existing home inventory numbers. And despite all the other positive indicators, those figures are still much too high for comfort.

The real estate market has endured a few years of painful price drops, and home values may have a bit further to fall. But independent experts say the bottom is very close. With prices in many areas at 2002 levels, and mortgage rates at 5%, this may be the moment for you to buy a home.

Some recent reports on the real estate market show home prices starting to stabilize in many areas. Other data suggests the housing market has further to fall. But whichever direction the numbers are heading, there are few tenets that smart buyers and sellers should always follow.

One of the biggest scams perpetrated on the American public is the idea that owning a home is the "American Dream." It's more nightmare than dream, as millions of Americans now know. But it has always been that way. Here's why.