Interest rates in recent weeks have largely held steady. After the Federal Reserve surprised Wall Street with a half-point reduction in the discount rate, mortgage rates rose for a few days -- and then came down again.

In general terms, rates during the past month for fixed-rate, 30-year loans were in a band ranging from 6.70 to 6.85. Whether at the high end of the band, or the low end, such rates are attractive when compared to interest levels during the past few years.

If you can afford larger monthly payments, then consider 15-year financing -- the monthly cost is higher, but you can shave 180 payments off your mortgage term.

Your Credit May Be Stronger Than You Think

Virtually all real estate sales involve some form of financing, so there is little doubt that the lending process is critically important. While many people worry about their credit standing, the fact is your credit may be surprisingly strong.

You say the payment for a credit card bill was a week late? Always pay bills when they are due -- or before -- to avoid possible fees and also changes in loan terms. But for credit report purposes, being a week late is unlikely to be an issue because credit reports only list payments that are at least 30 days past due.

Have you gotten a bonus consistently in the past few years? Are you likely to continue getting a bonus of equal or greater size? If yes, lenders are likely to add the bonus to your income for qualification purposes.

Here's one more: Do you own your car? Do you have a car loan -- not a lease? Do you have fewer than 10 monthly payments to go? If yes, some lenders will not count monthly auto payments (and other installment loans) when calculating your income for qualification purposes. You must, of course, tell the lender about the auto loan as well as all debts -- but be sure to mention how many payments are left.

Be Careful With Pesticide Foggers

You've seen the pesticide foggers carried in supermarkets and hardware stores. If you have a bug problem, such products will largely do the job of eliminating pesky insects.

But a word of caution: Such foggers create fumes and those fumes can be explosive when exposed to open flames. In one New Jersey case, a woman was badly burned and several properties were destroyed when she used several foggers at once and the fumes were exposed to a kitchen pilot light.

If you use pesticides or any household chemicals follow the directions carefully, have adequate ventilation, and be aware that everyday products can be surprisingly dangerous if used incorrectly. Many manufacturers have 800 numbers and web sites if you have questions.

Adjustments At Closing

A question which constantly arises concerns the matter of who pays what at closing. For instance, what happens if an owner has pre-paid property taxes?

The sale agreement outlines the obligations of both buyers and sellers. In the contract is standardized language to address the typical issues found in most home sales. In many instances, as well, there is specialized language to spell out specific terms related to an individual transaction.

So what about those pre-paid property taxes? In a typical transaction the closing agent will make an "adjustment" -- in this case the seller will get a credit at settlement equal to the value of the pre-paid tax.