From Homescape

As a Chicago Cubs fan, a clichéd but fitting saying is often echoed from every fan after the baseball season ends: “There’s always next year.” As you finish out 2007, you’re probably reflecting on the things you wished you would have done this past year. You can’t change the past, but there is always next year, and better planning will make accomplishing those goals more realistic.

While the mortgage and housing markets are likely to face more turbulent times in the coming year, 2008 conditions are tipping in the favor of prospective home buyers. According to real estate guru and nationally syndicated columnist Ilyce Glink, “The market may be down, but it’s not out.” In an article published in Inman News last week, Glink offered some useful tips for 2008 home buyers. Here’s a sample of her advice:

Get credit and finances in order. While having personal debt doesn’t mean you can’t qualify for a loan, it can lower the amount of the mortgage a lender might be willing to give you. And, given the current mortgage crisis, lenders are paying close attention to your credit history and  credit score. If you keep one resolution this year, choose to clean up your credit. One of the best things you can do to prepare for buying a home is to make your monthly debt payments on time. Even if you have a lousy credit history, lenders will be more forgiving if they see you've gotten your act together in the last six to 12 months.

Perform “plastic surgery” on your credit cards, and don’t max out any one card. In fact, never charge more than 30 percent of your maximum credit limit or your credit score will suffer. If you’re going to cancel an account, do it in writing. You get bonus points on your credit score the longer you maintain a credit account. So a credit card account that you opened in 1984 is worth a lot more than one you opened last month.

Most lenders require that you work for the same employer for at least a year, and maybe two, before they will approve your home loan application. If you’re self-employed, they will want to see at least two years of tax returns before you can qualify for a conventional loan.

Know how much you can afford. You can pay a visit to your local lender, who will prequalify or preapprove you for a loan; or you can go online. Your lender will look at your income, debt, assets and liabilities, and come up with the maximum amount you can spend on a home.

Know the neighborhood. Explore new areas and the housing stock and amenities they offer. Make sure you spend time during different parts of the day and night in the neighborhoods you like. Walk the streets and go into local shops. Stop by the local park district offices and see what programs and classes are available. Drive the commute from prospective neighborhoods to your job during rush hour.

Interview at least three brokers before hiring one. There are large brokerage firms and small neighborhood shops. You can even choose not to use a real estate agent, although as a buyer you won’t be out-of-pocket for the cost, so there’s no reason not to use one. Many buyers today opt to use buyer agents, or buyer brokers, who represent the interests of the buyer rather than the seller.

To get more valuable advice from Ilyce, visit her Web site at ThinkGlink.com.

Given the turbulence of the housing market, do you plan on buying a home next year?