Make that home dream a reality

By Eileen AJ Connelly Associated Press
NEW YORK — Even with the scars left by the housing mess, homeownership is still a goal for many Americans.
If you vowed to make your homeownership dream come true in 2012, it’s time to get started. Indeed the timing may be ideal. Housing market observers say that prices appear to have bottomed out in many markets, and mortgage rates are at their lowest point ever.
But don’t let prognostications cause you to jump in too quickly. As many have learned since the housing bubble burst, being ill-prepared financially can cause lasting damage.
Although there were some positive signs in recent months, it will take many years before the housing market is back on track. In 2011, home sales totaled 4.26 million. That was up slightly from 4.19 million in 2010, but was far below the 6 million that economists equate with healthy housing markets.
That gives prospective home buyers a chance to get their plans in order before taking the plunge.
First, make sure you’re really ready to buy. That’s more than a financial calculation. Consider if you expect to remain in the same city for several years? Ask yourself if you’re ready for the lifestyle change that comes with the responsibility of owning? Will you be able to handle simple maintenance or can you afford to call someone in every time a drain clogs?ou might want to start with some classes through organizations like NeighborWorks America, www.nw.org, where you can learn the basics of home purchasing and upkeep.Second, make sure you pursue the right type of home for you. There are benefits and pitfalls to various types of ownership. Co-ops and condos, for example, can relieve owners of the responsibility for tasks like shoveling snow and dealing with contractors for major repairs. But both property types require collective decision making for even small items, like rules on holiday decorations, which can be frustrating. Similar issues may arise in townhouse developments.
Single-family homes offer more freedom and control of the property, but place the burden and the costs of everyday maintenance and major projects on the homeowner.