My Personal Opinion about the current Housing Market in Nevada County:

Although prices continued to drop in 2011, the latest prediction is that prices will stabalize in 2012.  I do feel that anyone waiting for home values in the area to increase before they sell, may be waiting 2-3 years before they see home appreciation; even then, possibly 2-3% per year.  It is simply the "Supply and Demand" principle that seems to impact the market.  As long as we have an abundant supply of homes including many foreclosures and short sales, values likely will not increase. 

Not much land is selling in Nevada County, primarily because the price of existing homes is so low.  Some homes in the county are selling for under $100.00 per square foot.

Based on experience, my advise for obtaining a loan would be "do not go directly to a bank".  My own personal experience with a client was "overwhelmingly" frustrating.  I have heard from other realtors that whatever bank it is, the result is the same (disaster).  My advise would be to find a reputable loan representative.  You should not be paying anymore for a loan through a loan representative, and you will have one contact instead of several that do not talk to each other.