Mortgage market: a scary new world.

• Position: YOUR LIFE

If you are thinking about moving or refinancing in the coming months, it would be wise to make a plan now for how you will approach lenders. The current debacle in the subprime mortgage market has made all lenders somewhat skittish about future business and, while getting a loan will be possible for most borrowers with acceptable credit, it makes sense to make yourself attractive as a borrower while anticipating fees and conditions you might face, suggests the Financial Planning Institute, Denver, Colo.

Get some advice. Given changing mortgage conditions, it probably makes sense to see how mortgage debt fits into your overall financial picture. You might consider meeting with a financial planner to review how much of a loan you can afford based on your own financial circumstances. If buying a new home, bring your agent or lawyer into the loan discussion--they not only may have good contacts, they may help negotiate a better deal.

Clean up your credit. A good credit report always is essential in a lending process, but even more critical now. Various reports say that lenders want credit scores that are at least 10 to 20 points higher than standards for various loans only six months ago. Things may stabilize early this year, but do not count on it. Remember, you have the right to a free credit report annually from each of the major credit rating agencies--Experian, TransUnion, and Equifax--but order them (they are available from www.annualcreditrepert.com) at staggered times throughout the year so you can catch potential errors as they occur and have the firms make the proper adjustments.

Cut revolving debt. When the holidays roll around again, resolve not only to curb spending, but to attack credit card debt. A large amount of unsecured debt is a negative on mortgage applications, so even if you cannot eliminate it all, make sure those balances get considerably smaller before you apply. Keep in mind that credit scores generally are higher for those who borrow 30% or less of their credit limit on any revolving account.

Be prepared for larger downpayments. Current borrowers have been getting a shock after applying--in certain...