There are many things to consider if you plan to move. Will housing prices increase? What will happen with interest rates? What will happen to the economy this year?

My crystal ball is a bit cloudy on these issues, but many industry experts say that market prices will drop 5-8% in 2008. However, if you are upgrading to a bigger house, the prices on that house will also be falling.

And interest rates are still in the 6% - 6.5% range.

So, if you’re planning a move in 2008, there are things you can and should do to prepare yourself and put yourself in the best possible position.

1. Get pre-approved for a mortgage. By doing this, you’ll have a better idea of what price range of houses you’ll be able to afford. It also puts you in a stronger position when you find your dream house and put in an offer. However, banks are offering huge mortgage amounts - just because the bank will give a loan doesn’t mean you need to borrow the maximum amount. Look at your total financial picture to figure out what you can really afford.

2. Determine how much cash you’ll have available for a down payment - include the equity from selling your present home (if this applies to you), and savings. Don’t forget closing costs.

3. Estimate how much your new bills (utilities, insurance, maintenance etc.) will be.

4. Prepare your paperwork, tax returns for the past 2 years, bank and investment statements, recent pay stubs, so that when you apply for a mortgage they are readily available.

5. Avoid making major purchases if possible, especially a new car. This could possibly lower the mortgage amount you can be approved for.

6. If appropriate, prepare your old house for sale. Spruce up the exterior, consider new paint in the interior, clean the closets and do any necessary repairs.

7. Estimate the sales value of your old house. This can be done by analyzing the recent sales price of comparable houses in your neighborhood. We can prepare a Comparative Market Analysis (CMA) to assist you.