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 said that home prices were nowhere near the bottom.

I don't have credentials like Greenspan and Green whom I greatly respect. Before I retired, I was a mortgage broker for many years. Before that I was a real estate agent. 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.

The reason I share this is to let you know that I have passed through every financial cycle and survived to tell about it.

Our introduction to working in real estate began 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 news of doom and gloom overtake TV, radio and the internet, know that the worst of the credit crunch has passed. 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. For the most part a home is something that takes money out of your pocket.

However over time, home ownership brings financial stability to a family as long as the mortgage 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 know how to time the real estate bottom or the direction of mortgage rates. Truthfully, no one else does either. Even the so-called financial gurus received a surprise by the magnitude of this present crisis.

Second, start now to investigate your market. 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. Familiarize yourself with your market.

Fourth, use the services of a mortgage company to become pre approved. 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 easily know 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.

Good luck.