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According to the National Association of Realtors, the net worth of a homeowner has, on average, ranged from 31 to 46 times the net worth of renters. Buying a house can clearly be a great investment in your financial future. It can also give you a place to set down roots and let your family grow up. On the other hand, buying a house can also be an expensive mistake if you aren’t ready. So, how do you know if now is the right time for you? Consider these questions.

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Buying a home is a great investment in your future and a great way to build wealth. However, few people – if any- can just buy a home. Instead, you need to get a mortgage. Mortgages are secured loans that use the house as collateral. They are structured differently than other types of loans because they typically are paid off over a much longer time.

Mortgages come in different types, and have different terms- so be sure to be aware of what your mortgage means to your finances before you sign on the dotted line.

Americans may have thought the worst of the recession was behind us not too long ago, but with the credit downgrade and the subsequent market reactions, the message was loud and clear: we are still in major recovery mode.

That’s bad news for homeowners especially. According to 24wallst.com, home prices still have not hit their lowest points. Analyzing unemployment levels, household income and market forecasts across 380 cities, the site compiled a list of cities whose real estate markets are expected to “collapse” this year.

Fort Lauderdale home on market for $399,000

10. Fort Lauderdale, Fla.
Expected price drop: -11.1 percent
Median family income:$58,800 (194th highest)
Unemployment rate: 11.8 percent
Median home price:$196,000 (55th highest)
Projected to hit lowest level: Q2 2013

9. Bethesda, Md.
Expected price drop: -11.5 percent
Median family income: $114,100 (the highest)
Unemployment rate: 5.1 percent
Median home price: $417,000 (5th highest)
Projected to hit lowest level: Q3 2012

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

As you prepare to buy a home, you may be applying for financing. Consider your current and future financial situation when deciding how much you can afford in a mortgage payment. Think about the type of loan you may want. Are you comfortable with an adjustable interest rate or do you prefer a fixed rate? Although adjustable interest rates tend to be lower, you might be more comfortable with a mortgage payment that is stable and predictable, as with a fixed interest rate. Take into consideration how you will be using the loan. Someone buying a fixer-upper might need a different loan than someone buying a newly constructed home. Wells Fargo’s Home Loan Workbench is an online tool that can help you find the right mortgage to fit your needs. You can compare loan scenarios and request a free consultation.

For more financial tips and information, visit wellsfargo.com/mortgage.

A recent report by Deutsche bank shows that in many cities, it’s actually cheaper to buy a home than rent one. It certainly signals a change in times, especially for residents of the following 10 cities. According to the banks’ research, renting will cost you more in these locales as opposed to buying. So if the price is right, it makes a lot of sense to start investing again in home ownership.

10. Memphis, TN

4 br home selling for $147,900

Renting costs 21.9% more than buying (based on after tax mortgage payment)

Median home price decline, 2006-2010: -15.5%

9. Buffalo, NY

Renting costs 22% more than buying
Median home price change, 2006-2010: 23.8%

A recent report by Deutsche bank shows that in many cities, it’s actually cheaper to buy a home than rent one. It certainly signals a change in times, especially for residents of the following 10 cities. According to the banks’ research, renting will cost you more in these locales as opposed to buying. So if the price is right, it makes a lot of sense to start investing again in home ownership.

10. Memphis, TN

4 br home selling for $147,900

Renting costs 21.9% more than buying (based on after tax mortgage payment)

Median home price decline, 2006-2010: -15.5%

9. Buffalo, NY

Renting costs 22% more than buying
Median home price change, 2006-2010: 23.8%

Today is a special day. It’s the beginning of the year—a clean slate that is completely unblemished by last year’s mistakes and mishaps. Even if you’re not the type to make resolutions, you can’t help, but feel like things are brand new on the first day of the year.

What will you do with this day of firsts? Let’s start 2011 on the right foot, Mesdames!

Here are a few suggestions to help you set the tone for the rest of the year!

by R. Asmerom

It’s safe to say that many people have been disillusioned by the recession. The sense of job security and stability evaporated for many with the massive layoffs in the workplace and the spiraling depreciation of assets in real estate and investments. Despite the bad times, many Americans still had faith that real estate prices would bounce back up and finding a bargain of a real estate deal via foreclosure sales or otherwise would put them back on the fast track to ride the next wave. That’s very wishful thinking says The New York Times. “More than likely, that era is gone for good.”

According to analysts interviewed for the piece, Americans have largely come to understand the relationship between housing and wealthbuilding as iron clad, when that is not necessarily the case.

It’s difficult for many to disassociate one from the other since home buying has been pushed as the most responsible and reliable ways of building security since the 1960s. The George W. Bush era, with its home buying incentives, and the witnessing of  everyone from real estate tycoons like Robert Kiyosaki of Rich Dad, Poor Dad fame to everyday Joes quadrupling their investment in a very short amount of time has provided some powerful imagery when it comes to real estate economics 101. But now Americans have to contend with a new school of thought.

“People shouldn’t look at a home as a way to make money because it won’t,” said Dean Baker, co-director of the Center for Economic and Policy. Maybe the outlook is not very optimistic but, of course, it can’t be all gloom and doom. There will still be bargains to be had for the astute homebuyer. As for the basic real estate investors, the takeaway is that real estate riches may not come so easily again for the lucky masses, but will be reserved for the well prepared and strategic players – as is the case in most business-related matters.

(WSJ.com) — When it comes to house hunting, Kim Sliney is the first to admit she can be picky. The 46-year-old interior designer just couldn’t see herself living in small, chopped-up rooms. Or being happy in boxy interiors adorned with blah bathroom tiles and Formica counters. After visiting—and vetoing—37 houses, the single mom from Exeter, R.I., happened upon her just-right fit: a newly built, $350,000 home that boasted a spacious-feeling layout, killer walk-in closets and custom details like crown molding, granite countertops and a gas fireplace—for no extra charge.

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(NYTimes.com) — Real estate agents say buyers and sellers are hurrying to take advantage of the tax credit, which is worth up to $8,000 for home buyers. But the last-minute rush is also prompting some foreboding about what will happen to the market on April 30 when the credit ends — and whether it is too risky to let it end at all.

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