Experience the advantage of becoming a pre approved home buyer. It's no wonder sellers prefer a buyer who is mortgage ready. Don't miss the home of your dreams because you did not prepare.

I recently received a newsletter from one of my favorite stock gurus. His name is Alexander Green, Chairman and Investment Director for the Oxford Club, a private investment club. In the newsletter "Real Estate: Why Greenspan Is Right This Time", Alexander Green comments on remarks made by Alan Greenspan regarding falling home prices. Mr. Greenspan had explained that real estate values might drop even further.

I don't have credentials like Greenspan and Green whom I greatly respect. I am a mortgage broker by profession. Prior to that, I sold real estate. Before that my husband was a real estate agent. Jointly, we have been professionally involved in over 3 consecutive decades of real estate markets and more than 5 decades in totality.

I mention this because I have experienced every type of market and lived to tell about it.

When we first became involved with real estate, we were living in Long Beach, California. It was 1979 and we were in the middle of the Savings and Loan Crisis, a crisis that was just as devastating to the real estate market as the Credit Crunch we are experiencing today.

Here is what I learned. Timing the market can be frustrating and discouraging. But this is a fact. When the media noise is the loudest and fear is the strongest, it probably means we are near the bottom of the housing crisis. I have seen many people try to determine the exact time to buy a house, believing that they could pick the perfect low point in the market. It was seldom successful and ended up in frustration.

Here is what I think. In spite of what some professionals claim, the home you live in is not an investment. I tend to follow Robert Kiyosaki's view in this regard, the author of "Rich Dad Poor Dad". When he explains in his book that a house is not an asset, he is saying an investment is something that puts money in your pocket. The home you live in is primarily an expense.

Long term, though, good news bears out that owning a home contributes to financial well being assuming the monthly payments are affordable. In addition, if you look at home ownership statistics over a 20 year period instead of a 2 year period, it is almost impossible to lose.

So, here is my recommendation. First stop waiting for the media to tell you it's okay to buy a house. They don't possess any insider knowledge regarding real estate trends or whether interest rates are getting better or worse. Truthfully, no one else does either. Even the so-called financial gurus received a surprise by the magnitude of this present crisis.

Second, begin a closer look into your market today. Start by deciding which areas that you would prefer to live in. Study the prices. Use real estate websites to request notification every time a new listing comes on the market. Many realties now offer this service.

Third, on weekends take a little time to relax by visiting open houses. This can be fun. Talk to real estate agents. Get the lay of the land, so to speak. Educate yourself well in regards to your area.

Fourth, get pre approved by a mortgage lender. The most important part of buying a home is knowing how much you are qualified to borrow. Make the decision to get pre approved before shopping for your most important purchase, a home.

Fifth, save, save, save. One of the most important reasons for mortgage pre approval is to determine how much money you are going to need for down payment and closing costs. These are important numbers to know before shopping for a home, not after you make an offer. The safest way to eliminate surprises and remain realistic while searching for your new home is mortgage pre approval.

When the housing market is going to turn around is anyone's guess. No one knows.

However you can count on this. This housing downturn will end. But don't wait to prepare. The buyers who do their homework now by following these 5 steps will be ready to strike.

Introducing more tips and techniques to savvy home buying. Visit Mortgage Insider Kate Ford at Mortgage Pre Approval