One of the Yahoo Real Estate experts, Illyce Glink, is one of my favorites.  She wrote a piece entitled, “Get ready to buy in 2009″ recently.  I wanted to share a couple of points she made in her column,

These are three of the most important aspects today of a Buyer who is prepared and ready to make that offer once a property is located;

Ms. Glink points out that, “As a buyer, I resolve to: Get my credit and finances in shape.”

What does this mean?  Ms. Glink goes on to expound that you should “put a lid on your spending, perform “plastic surgery” on your credit cards, and don’t max out any one card (in fact, never charge more than 25 percent of your maximum credit limit) or your credit score will suffer. If you’re going to cancel an account, do it in writing, but remember that 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.

Don’t forget that good credit also means job stability. Most lenders require that you work for the same employer for at least a year, and maybe two, before they’ll approve your home loan application. If you’re self-employed, they’ll want to see at least two years of tax returns before you’ll qualify for a conventional loan. If you’re offered a better job in your field, by all means take it. But if you want to buy a home, try not to jump from job to job to job within a relatively short period of time, particularly if the job changes are in different industries.

If you want to buy a house next year, pull a copy of your credit history and credit score. Try to reduce the amount of personal debt you have, including credit card debt, student loans and auto loans. While having personal debt doesn’t mean you can’t qualify for a loan, it will 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.

Federal law now requires each of the three main credit reporting bureaus (Experian, Equifax and Transunion) to give you a free copy of your credit history once a year.

To get yours, go to Annualcreditreport.com . At the time, buy a copy of your credit score from Equifax. The cost is under $10, which is still less than buying it through MyFico.com.”

She also indicates that it is also important to “Know how much I can afford to spend before shopping for a home.”

She states that “you have three options when it comes to figuring out how far your down payment and income will take you: (1) you can guess; (2) you can pay a visit to your local lender, who will prequalify or preapprove you for a loan; or (3) 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. Once you know how much you can afford to spend, you’ll avoid making a common, heartbreaking, homebuyer error: looking at homes you can’t afford to buy.

Too busy to visit a lender? There are several Web sites that offer good mortgage information. Try Bankrate.com for a state-by-state look at current interest rates from lenders who work in your area, including online lenders. Every major mortgage lender has a Web site. And, don’t forget to check the rates at your local credit union — it’s often the cheapest place to get a loan.”

Finally, “Know my neighborhood, and be comfortable with it, before I buy a home there.”

As she points out, “Everyone wants to live on the best block in the best neighborhood. Unfortunately, that location may not be in your budget. You might be able to afford the smallest home on the best block, but that won’t do you much good if you need four bedrooms and that home has only two. Balancing affordability with location means you will have to compromise. While you may be willing to compromise on the size garden you have, you may not be willing to change your children’s school districts.

Start looking at various neighborhoods and the amenities they offer. Is there a park? Shopping? Transportation? A house of worship? Do your friends and family live close by? Be careful not to limit your choice of neighborhoods too early on in the process. 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. Visit the neighborhood police department and local schools. 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. Get to know the neighborhood and its residents inside and out before you buy.”

It seems we are going back to the “old school” way of looking at finances.  No more “stated income” loans, and an encouragement toward all Buyers to “not let your financial stomach be more than you can eat.”  In other words, times where people bought high end homes with little or nothing down just to be in the “right neighborhood” are all but gone.  I spoke to a lender friend of mine late 2007 about where the lending market was headed.  He said then that we are headed back to a lending climate similar to that of 20 years ago.  He was exactly right.

Hey, maybe I will tell my kids that being “old school” is not so bad after all!