At a time when mortgage rates are volatile, potential homebuyers are understandably nervous about what's coming next. After all, higher rates could dramatically reduce their buying power.

But while mortgage rate changes are a perfectly legitimate concern, Guy Cecala, a home loan expert and the CEO of Inside Mortgage Finance magazine, says the overall environment for borrowers is improving.

"I wouldn't say lending standards have become loose. But they're gradually getting looser than they were right after the credit crisis," Cecala says.

To cite a few examples, he notes that many lenders have stopped demanding down payments as large as those sought in the immediate aftermath of the economic downturn of a few years ago. Nor are they insisting on as high a credit score.

"Finally, it's also getting easier to obtain a mortgage if you're self-employed," Cecala says.

He predicts that layoffs in the mortgage business -- like those recently announced by the behemoth Wells Fargo -- are destined to become widespread. But he says this shouldn't affect customer service because banks and other lenders are still hungry for business.

"What's going on is the right-sizing of the mortgage industry. That's due to the drop off in refinancing activity and the fact that home purchase volume is rising only slowly. But the industry still has plenty of capacity to make loans," Cecala says.

He encourages homebuyers -- especially first-time purchasers -- to seek out lenders capable of originating an array of different kinds of home loans. That way their customers are more likely to obtain the best type of mortgage for their needs.

"It used to be that FHA was the obvious choice of first-time buyers. But the insurance premiums on FHA loans have risen to the point that conventional loans could be a good alternative for more people," Cecala says.

Here are a few pointers for home-loan shoppers:

-- Start by going to the Internet for baseline data on mortgage rates.

Those attuned to the lending industry know that a wealth of information on mortgage rates is available on the Internet. As a starting point in their mortgage search, Eric Tyson, co-author of "Mortgages for Dummies," suggests that homebuyers visit the websites of Bankrate (www.bankrate.com) and HSH Associates (www.hsh.com).

"When you track rates online, you get good benchmarks that help you make sure any deals you're quoted are truly competitive with the market," says Tyson, a personal finance expert.

Should you apply for a mortgage through an online lender? On that point, Tyson advises caution.

"At the end of the day, you're probably going to be a lot more comfortable dealing with a local lender you can see face-to-face if complications develop," he says.

-- Try to get references from lenders you're considering.

Whether you're looking for a buyer's agent to help you locate the best possible property or seeking a mortgage lender, references are enormously helpful, Tyson says.

Tyson says a better way of learning about mortgage lenders is to tap into a database of customer reviews from a company that tracks service providers, such as Angie's List (www.angieslist.com).

"What you're looking for is much more than simply low rates. You'll also want a lender who can complete your transaction on time and with a minimum of hassle," Tyson says.

-- Ask your real estate agent for the names of several lenders.

Many real estate agents maintain a database of lenders who can be counted on for smooth mortgage processing. Knowing whom they can trust is vital to agents because they don't earn commissions unless their clients obtain financing and their transactions go through.

"Good agents aren't going to jeopardize their reputation by giving out recommendations for lenders who don't have a positive track record for performance," Tyson says.

He suggests that you ask your agent for the names of at least three lenders he or she trusts, knowing that at least one or two likely are affiliated with the agent's company.

"It's very important that you shop widely," he says.

-- Look out for red flags when interviewing lenders.

Most loan representatives work on a commission basis. What's more, the size of their commissions is often tied to the size of mortgages they make. That gives them an incentive to make the largest possible loans.

Because of this, Tyson says you should be wary of any lender who pushes you to take out a mortgage bigger than your comfort level.

"Good mortgage lenders are good listeners. They ask you questions about your plans -- including how long you intend to stay in the home you want to buy -- to determine the most appropriate mortgage for your needs," he says.

-- Remember the importance of your mortgage decisions.

The recent recession taught many people about the serious implications of making a hasty or ill-considered decision on home financing. Although abuses by lenders were widespread, many homebuyers allowed themselves to be lured into mortgages with provisions they didn't fully grasp.

With the current easing of lending standards, it's once again very possible that lenders could encourage you into a type of loan for which you're ill-suited.

Tyson says it's critically important to understand the terms and conditions of your mortgage financing before you close on a deal.

"Never forget that the mortgage you take out to buy a house is probably the single biggest financial obligation you'll ever make," he says.

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

Kristin Bertilson was just 13 when her family decided to move from their large Victorian house in Maryland to a much smaller place in Oregon. As the eldest of four girls -- and the one born with what she calls "the organizing gene" -- she pitched in to downsize the family's seemingly countless possessions.

"It was a huge job because all we could take along was what fit in our two cars plus my grandfather's small trailer," Bertilson recalls.

The experience taught her many lessons she's applied hundreds of times after starting her own small firm, Queen B Organizing. Her company helps clients purge household accumulations, usually in preparation for a home sale and move. It can be an emotional and daunting experience, but it's increasingly a necessary one.

Mark Nash, a real estate broker and author of "1001 Tips for Buying and Selling a Home," urges home sellers to undertake the purging process as soon as they know they'll be moving. That's because a de-cluttered home is much more appealing to prospective buyers.

"You'll have to pack up anyway when you move. So why not do your purging and packing before you list your property rather than right before you move?" Nash says.

Here are a few pointers for downsizers:

-- Do a preliminary inventory of your accumulations.

Some downsizers try to grapple with the de-cluttering process without a plan. But those who do a preliminary inventory of their problem before seeking to solve it are more efficient, says Dorcas Helfant, a former president of the National Association of Realtors (www.realtor.org).

"Sellers who have a room-by-room picture of all their possessions can make faster decisions about how to streamline it all," she says.

The listing agent you've chosen to sell your home can assist in assessing which items should be removed from your place before it's shown. These will likely include some bulky furnishings.

"A house filled with furniture can look a lot smaller than it truly is. And no one wants to buy a house that seems crowded," Helfant says.

-- Create an action plan.

Nash says those who are most efficient at de-cluttering follow a step-by-step action plan.

As a beginning step, he recommends you plot the space in your new property before deciding on the items you can take with you. This assumes, obviously, that you've already selected your next home.

A few years back, Nash left a 3,200-square-foot bungalow for a 760-square-foot condo -- requiring him to drastically reduce his total belongings. To gain a more precise estimate, he bought graph paper and plotted the layout and storage space available at his new residence.

"The drawing allowed me to plan a place for everything I expected to take with me, down to my bike and favorite clothes. That made it clear which things would be impossible to keep," he says.

-- Take a systematic approach to sorting.

During their years in a property, many homeowners unwittingly acquire a large array of similar items. Early in the purging process, Nash suggests that sellers sort like items to determine what's superfluous and what isn't.

"I'm talking about all that stuff you went to the store to buy because you didn't know you already owned it. After you see all the rampant duplication, it's easier to cut out extras," he says.

Once you have the like items in each room categorized, use what Nash calls the "three-box system" to cull through them efficiently. One box should be labeled "keep," a second "give away or sell," and a third, "I don't know."

To hasten the process, immediately make arrangements to have your "give away or sell" items carted off. This allows you to create more space to sort through possessions from the "I don't know" box that will require more consideration.

-- Make liberal use of your trashcans.

For home sellers who must clear through a house full of possessions in a short period of time, trashcans become essential gear.

"It may not be environmentally friendly, but it can be one of the best available solutions to simply throw a lot of things away. 'Out of sight, out of mind' is the mantra you have to use," Nash says.

How do you decide what to toss?

When going through piles of clothing, Nash recommends this rule of thumb: "If you haven't worn the item for a year, throw it out." He also recommends you reconsider keeping old gizmos you're no longer using.

"Most all that dated technology should go into responsible recycling. There's no point in keeping technology that's obsolete and has undoubtedly lost all its value," he says.

-- Bring in your "support staff."

Even well-organized downsizers find the purging process arduous. Because of that, Nash says it's ideal to seek the assistance of friends or relatives.

If you don't know anyone you're comfortable recruiting, Nash says you can find reasonably priced help -- perhaps from a high school or college student -- through "help wanted" advertising. Or you might consider going online to find a professional organizer in your area. One group that offers referrals is The National Association of Professional Organizers (www.napo.net).

"Whatever it takes to motivate and organize you is what you've got to do," Nash says.

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

Mary McCall has sold homes since 1987, and with each year that passes she encounters more would-be sellers who resist the need to make vitally important pre-sale improvements to their front yard.

"A house that looks uninviting from the street won't capture enough buyer interest to get showings. But a house that looks fabulous from the street -- with manicured flower beds, blooming perennials and fresh mulch -- can command tremendous buyer interest," says McCall, president of the Council of Residential Specialists (www.crs.com).

"If you have weeds growing everywhere and vines climbing out of your gutters, your house will take longer to sell and for less money. That's because buyers who see an out-of-control yard assume the mechanical systems inside the house have also been neglected," McCall says.

As she notes, bushes and trees that grow near a property shouldn't rise above the bottom of window frames. And lawns should be kept weeded and fertilized, with all plants near the property kept trim and healthy.

Failing to tame an out-of-control yard is one common error many home sellers make. Here are a few others:

-- Mistake No. 2: Trying to show your home with a grimy interior.

Sid Davis, a real estate broker and author of "A Survival Guide to Selling a Home," says that trying to sell a home that's unclean is a huge mistake.

The problem is that buyers view other people's dirt and mess as far more objectionable than their own poor housekeeping.

"Those dirty dishes in the sink and the piles of dirty laundry in your teenagers' bedrooms are really a huge turnoff for buyers," Davis says.

As with yard work, McCall says fewer homeowners now have the time or willpower to tackle in-depth housecleaning chores. But when attempting to sell a property, cleanliness is paramount.

"Everybody wants a fresh start when they move. That's why buyers love a super-clean place. If a house they step into is dirty, they'll immediately turn around and walk right out," she says.

Unless their homes are immaculate, McCall recommends that sellers pay for in-depth cleaning. And she suggests that those planning to hire a professional cleaning service, as opposed to an individual, check customer reviews on a website that tracks service providers, such as Angie's List (www.angieslist.com).

-- Mistake No. 3: Rebuffing your listing agent's advice on fix-ups.

As real estate experts point out, sellers benefit when they receive a critique of their property well before it goes up for sale. That way they have time to make sure that all important repairs and upgrades are done before buyers troop through.

But Davis contends that too many agents "fear giving sellers the straight truth." He says some worry their candid remarks about a property could cost them the chance to obtain or retain the sellers' business.

But home sellers who are savvy welcome constructive criticism, he says.

"Why not hand the agent a room-by-room checklist on which they can itemize the improvements you need to make to maximize the sale? And leave space on the checklist for changes to your yard," Davis says.

Obviously, it's not enough to merely solicit feedback. You'll also need to go down the checklist and make the suggested changes, whether these involve replacing stained carpeting or fixing leaky faucets.

-- Mistake No. 4: Listening to pricing suggestions from know-it-all neighbors.

As soon as word spreads that you're planning to sell, the odds are neighbors will begin offering advice on pricing.

"Neighbors believe they'll benefit if you price high because they think that will push up local home values," Davis says.

But neighbors' views on pricing are often based solely on wishful thinking or the rumored sale prices for other homes that have sold. That's why Davis recommends you ignore their suggestions and set your asking price only after sitting down with your agent to do a systematic review of recent sales in your area.

"If you want another opinion, call in an appraiser. That's much better than relying on gossip," Davis says.

With rare exceptions, he urges sellers to avoid the common error of trying to "test the market" with a list price higher than what similar properties in the area have fetched. That's because an over-market asking price usually hurts the reputation of a home and yields less in the long run.

"It's one of the great ironies of real estate that greedy sellers are usually shortchanged in the end," he says.

-- Mistake No. 5: Hanging around during showings.

Real estate agents almost always advise their clients to disappear when their property is shown. But some sellers believe they know better and insist on staying around.

"These sellers don't like strangers walking through their home, which they find unsettling. They worry something bad will happen to the property if they're not there to protect it," says Fred Meyer, a longtime broker who sells real estate around Harvard University.

But, as Meyer explains, it's tough for buyers to bond with a property if they must muffle their comments to avoid offending the owners.

"Buyers need to be able to say out loud the negatives about a house so they can figure out how they'd address them. It takes a lot of energy not to say what you really think," Meyer says.

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