Dollars and Sense
Real Estate: Yes, It's Safe to Buy
BYDAVID UFFINGTON

Many renters have put aside their quest for home ownership, at least for now, because of the current state of the real estate market. Their fear is that prices aren't finished dropping and that a year from now they could be upside down -- owing more on the home than it's worth.

If you're looking for an investment with the hope of making a large profit in two years, then yes, you have reason to be concerned.

However, if you're looking for a home for your

family, a place you

can live in for many years, then the current market needn't be a major concern if you're careful.

Here are some considerations:

• Don't fall into the same trap that caused much of the current mortgage crisis. Aim for a fixed-rate 30-year loan. That way you'll know from year to year what your payments will be.

• Get your pre-approval and your mortgage letter first. With the letter in hand, you'll be able to strike immediately when you find a house you like.

• Don't let a lender entice you into taking the full amount of mortgage you qualify for. Add in your own monthly safety cushion. After all, you're the one who has to make the payments. Give yourself breathing room.

• Beware of buying in a neighborhood with a lot of For Sale signs. Ask your realtor for a list of recent sales. Sales signs with no recent sales could mean the neighborhood hasn't bottomed out yet. If the houses are abandoned, you could end up living in a ghost town.

• Check Zillow.com for comparable sales in your target area and look at Realtor.com for information and photos. You can weed out a lot of houses just by looking at the pictures.

• Don't buy the first house in a new subdivision, especially one that isn't finished. If the builder goes under, you could end up losing your down payment.

• Your best bet is to find a seller with a house that's been on the market for six months or more. By now, the seller's illusion of a quick sale has passed, and he or she will be more motivated to seriously consider all offers.

• Use a carefully chosen real-estate agent for protection. You're less likely to be a victim of fraud.

David Uffington regrets that he cannot personally answer reader questions, but will incorporate them into his column whenever possible. Write to him in care of King Features Weekly Service, P.O. Box 536475, Orlando, FL32853-6475, or send e-mail to columnreply@gmail.com.

(c) 2008 King Features Synd., Inc.