Looking for a new home? It's about ...
Making all the right moves
Buy or rent, apartment or condo, new or pre-owned home, single family or duplex. When you think about changing your residence, there are decisions to be made.
If you plan to live in the area for the next few years, buying can be the best financial move. If you have children, the need to find a satisfactory place to live would increase your desire to buy.
* It's one of the right moves, especially since homes are priced more attractively than they used to be. There are still bargains available, although housing prices in many areas are rising or will be rising within the next year.
* Always be preapproved for a loan before shopping . You'll know how much of a mortgage amount you qualify for. You could be pleasantly surprised.
* Trade-up buyers will get the best deals this year. Higher-priced homes are on the market about twice as long as those in the $100,000 to $250,000 range, according to the National Association of Realtors. If your real estate agent says prices are already stabilizing in your area, consider acting before they begin to rise again.
Visit cnnmoney.com/realestate2010 to see price projections for 384 U.S. metropolitan areas.
Ask your agent to make an offer that is 5 percent to 10 percent below selling prices of comparable properties within the last 60 days, rather than the percentage below the asking price. Your agent will negotiate for you.
* You can get more house for your money right now because interest rates are still low. A few years ago, 8 percent interest on a home loan was considered to be low. Today, there are loans available for about 5 percent interest.
* The best mortgage now is the 15-year fixed. At an interest rate of 4.5 percent or so, it's more than half a point better than for a 30-year mortgage. You would save more than $165,000 over the life of a $300,000 loan, and about $82,000 on a $150,000 loan.
* Celebrate Independence Day. For most Americans, that's the Fourth of July. For you, independence day could come just a little later. It's the day you become independent from a landlord or independent from someone else's rules. It could be the day you become the owner of your own home.