If you're getting ready to buy a house during what is typically the busiest buying and selling time of the year, then offers may be flying, loans may seem confusing, and everything may be moving way too fast. That's why it's important to do everything you can to protect yourself throughout the entire homebuying process.

Low mortgage interest rates and a strong underlying demand for housing drove total state existing-home sales to a new record in the first quarter of 2003 with 34 states experiencing sales increases over the first quarter of 2002, according to the National Association of Realtors.

And the NAR says that many states that saw sales decline actually had a shortage of homes for sale - and the biggest price increases.

"Too many buyers, not enough sellers is making this an exceptional sellers' market ... Some bidding wars are here again especially in the first-time buyers market of single-family homes," said Ben Lambert, a Realtor in Herndon, Virg.

The same phenomenon is being felt in other parts of the country.

"The lack of inventory continues to be a concern for the buyer," said Dave Petruncio, a broker in Western Springs, Ill.

What this means if you're buying during the frenzied spring and summer months is that you'll need to do everything you can to protect yourself as you make offers, obtain your loan, buy insurance, and strike up contracts.

Freddie Mac offers a number of tips:

Published: May 19, 2003

Use of this article without permission is a violation of federal copyright laws.