"Homebuyers looking to purchase a home in 2010 are facing a market that has changed dramatically over the past two years," states Holden Lewis, BankRate.com, in their annual 100 Smart Money Tips online guide.

"Rules for scoring a low-interest mortgage have become stricter, and homebuyers must be savvy and well prepared to land any home loan." But, there are many incentives available to help a buyer including the Extended $8,000 First-Time Homebuyer and $6,500 Repeat Homebuyer Tax Credits, historically low interest rates and competitive home values. Lewis has a few proven tips to make a borrower's homebuying odyssey more successful in 2010.

TIP 1: Get your loan early in the year.

"The Federal Reserve plans to stop buying mortgage-backed securities by the end of March. Most mortgage experts believe that rates will rise when mortgages go off Fed support as private investors require higher rates to compensate for the risk," says Lewis. April 30, 2010 is the deadline for the stimulus Tax Credits which leave you 17 weeks to find your dream home and make an offer. With a signed contract you'll be able to extend the closing to June 30, 2010.

TIP 2: Know your credit.

As the mortgage world goes back to basics, good deals require high credit scores. Until recently, a credit score of 720 or higher would command a low rate, but the bar has been raised so that the best deals go to borrowers with credit scores of 740 or higher. Start off right by ordering a free credit report at www.AnnualCreditReport.com.

TIP 3: Look at different loan scenarios.

Instead of focusing solely on the interest rate, consider different combinations of discount points and loan type. A Paramount Mortgage Banker can show what a borrower's monthly payment and rate would be paying zero discount points and compare them to other scenarios where borrowers pay discount points in exchange for a lower rate.

TIP 4: Consider an adjustable-rate mortgage.

In late 2009, one in 20 borrowers nationwide was obtaining adjustable-rate mortgages. As mortgage rates rise in 2010, the proportion of ARM borrowers is expected to grow. Ask yourself how long will you realistically live in the house. If less than five or seven years, consider a 5/1 or 7/1 ARM (Adjustable Rate Mortgage). ARMs carry an introductory rate typically lower than a 30-year fixed. A fixed-rate mortgage is probably the safest option for homebuying. But for people who plan to sell their homes within a few years, a hybrid ARM is worth considering.

TIP 5: Small down payment? No down payment?

Go with an FHA (Federal Housing Administration) guaranteed loan with only a 3.5 percent down payment or VA (Department of Veterans Affairs Guaranteed Home Loan Program) loan or RHS (U.S. Department of Agriculture Rural Housing Service) loan with no down payment. Proof of military service is required for the VA guaranteed loan program along with other conditions. RHS guaranteed loans have income restrictions as well as property location. A Paramount Mortgage Banker can give you all the details about these loan programs.

More 2010 homebuying tips are available at BankRate.com