I bought my apartment in NYC in 2004. You can read all about it, including price tag and mortgage payments in this NY Post tell-all.

The lesson here, and as I explain in You’re So Money, is that when it comes to owning real estate in your 20s, don’t ever underestimate your potential. And yes, even in THIS housing market.

Why am I so optimistic? Because I’m not suggesting buying a house for flipping purposes – that would be ill advice. But with prices taking a nosedive and with banks struggling to boost reserves, now is an opportune time to take on a mortgage and purchase some property. When the economy stinks (like it does now) consumers are actually at an advantage in some ways to demand better pricing from merchants and banks. After all, businesses are suffering, too, and they can’t afford to lose your business entirely. A short-term loss of giving you a discount is totally worth it because it effectively becomes a long-term gain for their business – customer retainment.

Some steps to take before house hunting:

1) Get pre-approved for a mortgage. This will depend mainly on your salary, your savings and your credit standing. Rule of thumb – you don’t want to take on a mortgage that’s more than twice or three times your salary.

2) Find a terrific broker. Not decent. Terrific. Some red flags – the agent calls everything “fabulous.” He or she just got licensed, is not familiar with your desired neighborhood and only works on weekends.

3) Boost your credit score. If you’re not in an immediate rush to buy a home and can allow yourself 6 months before applying for a mortgage, boost your credit score by making sure your credit card payments are paid off, you dont’ have any outstanding balances and don’t screw up! If you’ve been bad with your debt in the past, know that recent events can have more impact on your score than previous missteps.