The American Dream. For many people, the biggest symbol of that dream is owning their own home and the Dolans are no exception. Not so long ago, within a short period of time we closed on, or helped family members close on, five homes. Five! Needless to say, we empathize fully with all of our readers and listeners.

We get a constant stream of calls to our radio show from people in search of the American dream, and we want to see all of you fulfill that dream. But we also want you to be smart about it, so we'll help you answer two of the most important questions you need to ask before you sign on the dotted line.

Question #1: When Should I Buy?

Whether you're thinking about buying now, selling your present house and relocating/ upgrading, or buying a vacation house or investment property, you should pay close attention to the warning signs of a real estate market in decline. As a rule, the housing market doesn't move as fast as the rest of the economy. Sellers don't immediately lower their prices when demand slows; they just let their properties sit on the market longer.

One indication that the real estate market is slowing is the number of properties that have been languishing on the listings page for several months. We're seeing this in many parts of the country right now. Another sign is a glut of offerings from the mortgage industry. We are seeing mortgage lenders coming up with a plan to suit every home browser: interest-only loans, and smaller and smaller down payments, to name just two. (We'll talk more about those in a moment.) It's a pretty good sign that lenders are nervous and are going out of their way to attract business.

So does this mean you should wait to buy your home?

No. Any time is a good time to buy a house if you do your homework. This means checking comparable values and realistically figuring out how much house you can afford. Go over your finances thoroughly and critically. Ask yourself and your spouse or partner a really tough question: If one of you were out of the picture, or lost your job, could the remaining earner afford to keep up the mortgage and maintenance? Whenever possible, try to avoid buying a house based on the combined incomes of two wage earners. There are just too many uncertainties.

Take, for example, the problems our daughter's best friend and her husband experienced in the Boston area.

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