Dear Edith: My husband and I are considering buying our first home. How do we begin? -- J.D.

Answer: This is a great time to buy. Prices in most areas are more affordable than in the past, interest rates haven't been this good in decades, and as first-timers you may qualify for a $8,000 tax credit from Uncle Sam.

Start by visiting a mortgage broker or going directly to a local lender, to apply for pre-approval on a mortgage loan. You'll pay some fees, but you'll come out with a binding promise for a loan for a certain amount, dependent only on an appraiser later reporting the property you find is worth it.

With that in hand you'll be strong buyers, welcome to sellers because they know you won't have any trouble arranging financing. You needn't reveal the exact amount you could borrow, and you won't have to spend that much if you prefer not to.

Meanwhile, search the Internet, answer ads and visit open houses in areas that interest you. At open houses, most agents who are not busy will sit down and discuss your situation. You may meet a broker you feel comfortable about working with that way.

Or you can just walk in to local real estate offices and ask for financial analysis and advice. It won't cost anything or obligate you, and you may find the right agent while you're there.

Past Haunts Him

Dear Ms. Lank: Is there a national database of renters? I am trying to rent an apartment and stupid things I did in my first apartment are making it hard for me to get a place. Can landlords search my name and find out where I have lived before? -- Via e-mail

Answer: In some areas, landlords do exchange information, and of course prudent landlords pull credit reports and may search the Internet for other information. Sooner or later, though, you'll hit a landlord who doesn't do that and who hasn't heard about your past. Keep trying.

Options In Florida

Dear Edith: With the housing market the way it is now, our retirement home is worth much less than what we bought it for a few years ago. If we sell for less than what we owe, and don't have funds to make up the difference, what options are there? We want to avoid doing a short sale or foreclosure. -- Via e-mail

Answer: Your best option is probably to stay put, don't sell and wait however long it takes for the market to recover and your equity to grow. That won't work, of course, for someone who must sell now for job or health reasons.

There's always the option of renting the place out, but that has lots of drawbacks. Being an absentee landlord is asking for real problems. In many areas, you can't expect enough rental income to cover your expenses. And when you eventually do sell, a place never looks as good after being rented out as it did while you were living there. Continued...