One of the many parts of Murphy’s Law says, “Opportunity knocks at the most inopportune time.” That seems to be the situation in the real estate market today. There’s another law that says, "If you drop a slice of bread, it will always land on the buttered side.” But that’s for another story.

Opportunity is knocking.

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A few years ago, money was really easy to get if you wanted to purchase a home. Many loan applications were literally only one page long. The joke was if you had a pulse and were vertical, you qualified. Then it progressed to the point where you only had to be vertical. One loan program offered the borrower 125 percent of the purchase price with no down payment. Yes, that’s right. On a $500,000 purchase, the lender actually gave the buyer a first mortgage of $500,000 and an immediate second mortgage of $125,000. The lender assumed, along with the rest of the universe, that property price appreciation would never end. What did the borrower have to show the lender in order to get this incredibly generous loan? They showed…nothing. These types of loans were called “no doc” loans. The borrower’s income was “stated”, meaning he or she just told the bank what they earned. They didn’t have to show W-2 tax forms. Their assets were also “stated”, which meant that the borrower told the bank what they had in reserves. The lender did not check on this.

Fast forward to the present. To put it mildly, the state of the lending industry is such that many people would rather visit a proctologist than apply for a loan. A sharp stick up the nose into the brain is less painful than producing the paperwork necessary to get a mortgage. One of my clients who borrowed $8,000 dollars from her mom had to show the lender a copy of the $8,000 check, a copy of the deposit after it was deposited into her account, a copy of the bank statement showing the $8,000 in the account, a copy of the canceled check from her mother’s bank, and a copy of the mother’s bank statements pre- and post-$8,000. Whew. That’s a lot of work for a $200,000 loan. It’s as if the bank thought this lady’s mom was the head of one of Tijuana’s drug cartels and wanted to trace the money back to Columbia.

Don't be scared out of looking for a mortgage. If you have a down payment, verifiable income and assets, there is plenty of money to borrow.

"We are having great success in finding our clients the right mortgage for their purchase," says Scott Swartz of Cal Con Mutual Mortgage. "Experience in the industry is a huge factor when it comes to compiling the client's the loan package so it adheres to the lender's guidelines. This helps ensure a successful loan acquisition. Yes, it's a little more arduous than it used to be, but there are plenty of funds available for the consumer."

So, we have a tight lending market that says, "stay away." However, on the other side of the spectrum is the most attractive real estate market that we have had since 1999. There are some great reasons to go out there and purchase.

Another client just purchased a home for $650,000 that five years ago sold for $1,395,000, fully upgraded in perfect condition. New condo developments in the downtown area are offering fantastic pricing on their product, some reductions are as much as 50 percent off the original listing price as well as special incentives that include prepaid Home Owners Association fees and closing costs. Throw in the fact that you can get a 30-year, fixed-rate mortgage for under five percent, and you have the perfect storm. One thing that drives me bonkers is when a client hems and haws about locking in a 4.975 percent interest rate because they think it may go down to 4.875 percent. They risk not locking in a fantastic rate and chance having rates shoot up.

I remember in 1977, I took out a mortgage at 9.25 percent and was happy to get it at that rate. Historically, we are close to the all-time low in interest rates. (Go to mortgage-x.com for graphs that display rate trends over the last 30 years.) Sooner than later, mortgage rates will adjust upward. In the Wall Street Journal today, it's reported that Fed Chairman Ben Bernake is getting ready to tell Congress how he will combat the effects of the influx of money the government has shoveled into the economy. His solution? You guessed it. Raise rates.

Even the government is getting into the act of encouraging us to purchase real estate. For first time homebuyers, there is a federal incentive of $8,000 if you go into escrow by April 30 and close by the end of June. There is even a $6,500 Federal Credit for existing homeowners who purchase another home. The state of California is in the process of crafting a deal that will give you a credit to your state income tax like they did last year.

Now is the time to take advantage of the situation. However, I have one word of advice. Experience. In this type of market lending is difficult, and the demand is high and very competitive for the “good deals” that are out there. Be sure that the people who represent you, your realtor and your lender know what they are doing. When you pick your team, be sure they are experienced enough to guide you through this sometimes difficult but rewarding and exciting process.

Real, honest to goodness opportunity is knocking in the real estate market. It may not be at the most opportune time, due to the lending situation, but it is certainly worth the effort. As someone once said, “ When opportunity knocks, sometimes it only knocks once. And only you can open the door.” That door could lead you into your new home or condominium.