Rents are rising in many areas -- making homeownership a more alluring alternative to renting. That's a major reason mortgage specialists are now predicting an uptick in home-buying activity among prospective first-time buyers.

"In some areas it's now less expensive to buy than rent. Although the real estate market still isn't super robust, more buyers are moving off the sidelines," says Ray Eickhoff, a regional vice president with Fairway Independent Mortgage, a mortgage banking firm with offices throughout the country.

Eickhoff says the widespread view that the economy is gradually recovering is the primary factor strengthening many neighborhood markets.

But Scott Lanoff, a mortgage broker who heads his own firm, American Success Mortgage, cautions that all purchasers can expect a rigorous mortgage application process, given that lenders now operate in a much more demanding regulatory environment compared to the period before the recession.

"I've been in the mortgage field 27 years and it's never been harder to get a home loan," he says.

Keith Gumbinger, a vice president at HSH Associates, which tracks mortgage rates countrywide, says there are currently many fewer companies in the mortgage market currently. Even so, he says homebuyers can still command the attention of many good lenders.

Here are a few pointers for prospective first-time homebuyers:

-- Get an early jump on the mortgage search process.

The mortgage market is always evolving. In addition to the traditional 30-year fixed rate mortgage, new loan products are constantly developed by the industry.

Most innovations involve adjustable-rate mortgages of one type or another. But they can differ dramatically in their names, terms and conditions.

Gumbinger says both first-time buyers and repeat purchasers need as much lead time as possible to educate themselves on mortgage basics, to sort through alternative home-loan choices and to compare lenders and rates.

Gumbinger suggests mortgage shoppers seek consumer information through his firm's website, (www.hsh.com).

Of course, most home-loan applicants now favor traditional fixed-rate mortgages. But Gumbinger says buyers who expect to stay in the home they purchase for just a few years might consider a so-called "hybrid loan" on which the interest rate stays firm for three to 10 years before adjusting to market levels, because the initial rate would be lower than that of a fixed-rate mortgage.

-- Hold out for a lender willing to give you face time.

Gerri Detweiler, a consumer finance expert and author of "The Ultimate Credit Handbook," encourages first-time buyers to seek a lender who will instruct them on the intricacies of home loans.

"A reputable mortgage lender should spend at least 30 to 60 minutes with you on the fundamentals and should help you to begin fixing flaws on your credit reports," Detweiler says.

How do you find a sympathetic lender?

Gumbinger says real estate agents are usually a good source. But he says you should look beyond their suggestions, also asking friends or relatives who recently purchased a home.

-- Arrive at the lender's office well prepared.

To streamline the process, there's no substitute for gathering key documents in advance of your meeting. Ideally, these should include recent pay stubs, your latest W-2s, and a couple of years' worth of federal tax returns, as well as bank and savings account statements.

"They're necessary to help your lender set the upper limit on how much you can afford, a process known as 'pre-approval,'" Gumbinger says.

By providing these documents early, your lender can quickly calculate your top borrowing limit and also assess your eligibility for various lending programs.

-- Look into your credit standing to gain the best available mortgage rate.

Under federal law, you're entitled to one free credit report each year from the three largest credit bureaus" Equifax, Experian and TransUnion. You can easily request these online (www.annualcreditreport.com).

In addition to your credit reports you'll want to access your "credit scores." Such scores -- which draw on data from the credit bureaus -- seek to provide lenders with a quantitative measure of a person's credit risk. Most lenders still use the scoring method pioneered by FICO.

In most cases, you'll need to pay a fee for your credit scores. One way to obtain them is through the FICO website" www.myfico.com. You can also receive credit scores through the three large credit bureaus. FICO scores range from 300 to 850 -- the higher the score, the more likely you are to get the best available rate.

As soon as you've chosen the home you want to buy, it's time to get serious about making your mortgage application. And with your credit scores in hand, you can readily begin the process of comparison shopping for rates.

As Gumbinger says, you may wish to begin the rate-shopping process with the lender who tutored you on the basics. But he strongly suggests you extend your rate search beyond the first lender. He also recommends you consult community banks and credit unions.

"Try to gather at least 10 to 12 rate quotes before you applying for a mortgage. But always remember you're not only shopping rates. You also want quality service," Gumbinger says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

(EDITORS" For editorial questions, please contact Reed Jackson at rjackson@amuniversal.com)

Despite the recent economic downturn -- which has caused more young adults to move back home until they can find solid jobs -- the long-term trend is for more people in their 20s to live alone.

That's the finding of Eric Klinenberg, author of "Going Solo: The Extraordinary Rise and Surprising Appeal of Living Alone." In an interview, the New York University sociologist drew on U.S. Census data to support his conclusions.

Until recently, Klinenberg says many 20-somethings favored living with multiple roommates with whom they would have much in common. But that phenomenon has lately diminished.

"The fantasy of the collective housing situation has peaked. People living this way become disillusioned because there's always one roommate who doesn't pay the rent, who's messy or who just sits on the sofa all the time," Klinenberg says.

Statistics show that more young adults are delaying marriage until their late 20s or beyond. Yet as soon as they can afford it, many now seek the privacy and autonomy of solo living. And despite the housing-market turmoil in recent years, Klinenberg says a fair number of single people in their 20s now aspire to buy their own homes.

"Homeownership helps end the feeling of rootlessness. Single people who buy a place feel they're making a commitment to their life," Klinenberg says.

Margaret Carbonell Smith, a certified financial planner who heads her own firm, says interest among young adults in home-buying has begun to revive recently due to a combination of factors that can make buying more appealing than renting in many areas.

"It can be a really good time to buy a first home because prices are low and mortgage rates are also low," says Smith, who's affiliated with the Garrett Planning Network (www.garrettplanningnetwork.com).

Even so, she cautions would-be homebuyers who are single to be especially careful in assessing their financial situation.

"Buying a house is not a little purchase. And as a single person you have to remember there's no one else to pay the mortgage if something happens to your job," says Smith, who counts a number of young adults among her clients.

Are you a young single planning to buy a home? If so, these few pointers could prove useful:

-- Set conservative borrowing limits.

Among homeowners now facing foreclosure are many who used an adjustable-rate mortgage to finance their purchase. At the introductory "teaser rate," they were comfortable handling the payments on their mortgage. But once their ARM adjusted upward, they were in trouble.

Merrill Ottwein, a veteran real estate broker who works with many young homebuyers, says past problems with ARMs were often the fault of lenders who failed to fully explain all the terms of the home loan. But in other cases, borrowers were to blame for over-extending themselves. Either way, he says many homeowners might have avoided foreclosure had they simply taken a fixed-rate mortgage.

Smith, the financial planner, cautions all buyers, including young singles, against taking any mortgage (even a fixed-rate one) that feels uncomfortably large.

"Before you talk to any lender, sit down and take a serious look at your cash flow. When you calculate your expenses, make sure you include all your upkeep costs for the house -- including yard-work and painting," she says.

Also, don't assume the costs of home ownership will remain a constant within your budget.

"As a rule of thumb, I tell clients to expect a 3 percent annual increase in all their expenses except health care -- which is rising at about 8 percent a year," Smith says.

-- Search for a property a roommate might share.

You may be one of those young adults who longs to finally be free of roommates. Even so, Ottwein says it could be wise for single homebuyers to choose a property that could in the future be suitable for a rent-paying roommate.

"Sharing the house you own with a roommate can be a very smart financial situation. This can help relieve a lot of pressure from your mortgage payments," he says.

Single homebuyers who want to keep open the option of having a roommate should make sure they choose a property with an extra bedroom and at least two bathrooms.

-- Screen properties for energy efficiency.

Smith says that after moving into a house they've purchased, many young single buyers are unpleasantly surprised by the size of their utility bills. But she says more young purchasers are now beginning to shop for energy-efficient housing, the same way they're shopping for gas-saving vehicles.

To estimate the energy costs of any property you're considering, Smith recommends you ask the current owners for copies of their utility bills -- ideally going back two years or more. Be sure to factor in annual cost increases.

Also, he recommends you ask your home inspector to assess the energy efficiency of any property you might buy. Have the inspector check for energy-efficient windows, as well as insulation throughout the home.

-- Factor your social life into your home-buying decision.

If you're like most young single adults, having a high-quality social life is a top priority. In buying a home, you may be outpacing a lot of your friends. But that doesn't mean you'll want to move so far away that you'll rarely have a chance to see them.

"There's little worse than buying a home where you're stuck out in the middle of nowhere, stranded from your network of friends," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

During the worst of the economic downturn, many homeowners become landlords -- albeit reluctantly. Their reasons varied: Some, who'd gone through a job transfer or divorce, rented out a home rather than sell at a loss. Others, who'd lost jobs, converted their homes to rentals to avert foreclosure.

Fast-forward to an improving economy in 2012. Many reluctant landlords -- sensing a strengthening market -- are now ready to sell. This constitutes a potentially golden opportunity for homebuyers willing to consider a rental unit, says Sid Davis, a real estate broker and author of "A Survival Guide for Buying a Home."

"Buying a rental home is not for everyone. But if you can look past the (issues involved) you might get a tremendous deal," Davis says.

Why is it often possible to get a rental unit for a very good price? Because the market for rental homes is limited; few buyers can visualize how good an untidy rental property could look when it's cleaned up, according to Davis.

"Often the mere fact that a house has been used as a rental gives it a taint. Buyers assume all tenants have severely damaged the places where they live. These fears are sometimes justified but not always," he says.

Davis contends that bargain hunters need to distinguish between beat-up properties and those that just show poorly.

Davis estimates that savvy purchasers can often obtain a rental home in fair condition for at least 10 percent under the price for a comparable owner-occupied abode. He says a deep discount is especially likely if the home's owners are paying out more money in mortgage and carrying costs than they're taking in via rent.

Are you a homebuyer willing to consider a rental unit as your family's next home? If so, these few pointers could prove useful:

-- Seek to gauge the sellers' level of motivation.

Among the disillusioned landlords now eager to sell are would-be investors who bought properties during the downturn in hopes of making a healthy profit. But their plans were dashed by bad experiences.

"For these folks, their whole rental plan failed to work out as expected. For a variety of reasons, they couldn't collect enough rent to cover their costs. So now they're rushing to sell," says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

-- Seek to visit the place when the tenants are absent.

Davis says that as a rule those living in rental units are unhappy at the notion that their landlord plans to sell. Even if they're OK about moving, they have little motivation to keep the place presentable for would-be buyers.

"Renters can become easily disgruntled about a sale. For this reason, many try to sabotage the selling process," Davis says.

To make sure you can check out all of the property without interference from the tenants, he recommends you try to see it when they're absent. That way you can give the home greater scrutiny. For example, you could go into a walk-in closet or check inside the kitchen cabinets.

-- Always ensure you get an in-depth home inspection on a rental unit.

Some rental properties are overseen by professional management companies. But Davis says this offers no guarantee that a place has been kept in good repair and that all its problems have been caught.

"Many professional management companies handle only routine matters -- like mowing the lawn -- or emergencies, like a leaking water heater," he says.

What professional rental managers often miss are less obvious issues, such as a roof that's leaking into an attic. Also, they rarely deal with tenant-caused problems, like damage to hardwood floors or carpeting.

To ensure you identify all the problems with a rental property, Davis urges you to hire "a darned good home inspector."

To find one, he recommends you ask your real estate agent for a list of at least 10 candidates and then pre-screen them on the phone before making your choice. You can also find inspectors through such professional organizations as the American Society of Home Inspectors (www.ashi.org).

-- Obtain estimates for all major repair issues found by your inspector.

For 15 years -- until he sold the last one recently --Davis owned six houses that he rented out. This experience taught him that renters often don't bother telling their landlord about problems until they're very serious.

"A dishwasher might have been malfunctioning for months -- running all over the kitchen floor and harming the floor boards underneath. But until it stops working completely, the landlord or management company may never hear about it," Davis says.

As a prospective owner of a rental property, you need to know in advance how much it would cost to repair all of a home's problems. To do this, Davis recommends you get estimates for all needed repairs cited in the inspection report. Then use this data as a negotiating tool to either get the work done or lower the price of the property.

-- Search for a rental property whose problems are only superficial.

Despite indications of an improving housing market in many parts of the country, bargain properties are still widely available in many areas. But among those that carry the steepest discounts are rental properties, Davis says.

"Remember that despite the stigma, not all rental properties have serious problems. Some have solely superficial issues," he says.

To find a true bargain, Davis says the best approach is to look at any rental property you're considering with fresh eyes.

"Some long-time rentals are in disastrous shape. Never buy one of these, no matter how cheap, because they can cost a fortune in money and time to fix. Instead, look for a place that's just messy on the surface and just needs a little paint," Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)