Is This the Year to Move Up to Your Dream Home? If So, Do it Early

It appears that Americans are regaining faith in the U.S. economy. The following indexes have each shown a dramatic jump in consumer confidence in their latest surveys:

1. The University of Michigan Consumer Sentiment Index
2. National Federation of Independent Businesses’ Small Business Optimism Index
3. CNBC All-America Economic Survey
4. The Conference Board Consumer Confidence Survey

Be moderate in your approach when considering a purchase of real estate negotiations. Many buyers try to offer a real low offer; however, but this doesn’t always work in their favor. Be firm in what you want, however, since they have experience with those types of negotiations.

If you are making a major commercial property purchase, locate an trustworthy investment partner to do business with.

Keep an open mind in regard to what elements are the most critical in your options. You may not be able to afford the perfect house in the perfect community, but you might have enough to choose one of the two. If you can’t find a home in the area you want, find one with the amenities in a different neighborhood.

1. The Conference Board Consumer Confidence Survey

The closing costs can usually be calculated by adding the real estate taxes, bank points and down payment. In many cases, the closing costs include additional items, such as school taxes, and anything else that is specific to that area.

It usually means good news for the housing market when the country sees an optimistic future. People begin to dream again about the home their family has always wanted, and some make plans to finally make that dream come true.

Always hire an inspection of the home you want to purchase. You don’t want to have a home that needs major renovations. This makes the home that you will be responsible for and you may have to leave your home while it is repaired.

If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:

Once you have made the decision to start home shopping, you must find a professional Realtor to help with the process. You will want to find someone you can trust. An agent with a proven record can show you properly.

HSH.com:

“We think that conforming 30-year fixed rates probably make it into the 4.625 percent to 4.75 percent range at some point during 2017 as a peak.”

If you want to start a business, choose a good neighborhood. Starting up a new business in the wrong neighborhood will likely lead to obtaining less customers. Talk to real estate agents and find out what locations are ideal for starting up a new business.

Hire your own professionals when purchasing a house. No one likes the thought of spending out and spend money on something that are available for free. Even so, you will want people that you can trust to protect your interests in such an important decision. Getting to the unvarnished truth will save you enormous stress and expense in the road.

TIP! If you are considering renting a home or apartment that has a garden, make sure you ask your landlord about it. Some rentals will have the tenant to perform yard clean up or garden work.

You need good legal representation because complications during a foreclosure acquisition. You could save a whole lot later on because of this.

TIP! While you may put a lot of value in the view, it may not be to a prospective buyer if you decide to sell. Therefore, purchase the home because you love the view, just make sure you don’t overpay for it.

Don’t hire an appraiser unless they have five years of experience. Do not use an appraiser your real estate agency. There could be a pretty stern conflict of interest. Make sure that the appraiser you deal with has a state license.

Svenja Gudell, Zillow’s Chief Economist:

“I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent.”

Hire a professional inspector to do an inspection on the home you are planning to buy. It will require a fair amount of money, but the advantage over having someone you know inspect the home is that you can hold a bad inspection against a professional inspector, because you won’t have much recourse if the person you ask to do the work misses something important.

You should refrain from investing in a home that is situated directly on a busy roads. These properties will cheaper than those away from the roads, and you might be tempted to buy one of them; however, there is a reason why they are cheaper. You may not mind the noise from the road, but it will be harder to sell it if you want to move.

TIP! You will want to shoot for the biggest house in any particular neighborhood. The reasoning behind this is that you’ll never recoup the value of that house because the smaller houses will always keep your property somewhat stunted in that area.

Once your signature is on a mortgage, you have made a commitment that you will make that monthly payment, regardless of changes in your personal life.

Mark Fleming, the Chief Economist at First American:

“[I see] mortgage rates getting much closer to 5 percent at the end of next year.”

Lawrence Yun, NAR Chief Economist:

“By this time next year, expect the 30-year fixed rate to likely be in the 4.5 percent to 5 percent range.”

Bottom Line

If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.