Most people are so wrapped up in satisfying their dream of buying a home that they don't stop to look at whether buying or renting makes the most sense.

Ask yourself a few financial questions:

1. Is your source of income (salary or earnings) secure?

2. Do you plan on staying in the same area for at least four to five years?

3. Is your credit history good?

4. Have you saved for a down payment and closing costs?

And a non-financial one:

5. Do you really want the responsibility of owning a home?

If you answered "no" to these questions (we'll be helping you think more about these questions as you read this section), then renting may be your best bet.

Remember, we're talking about financial concerns here. You may have your heart set on owning your own home. That's fine. The important thing to remember is that you need to make an informed decision. When you have all the pieces of the puzzle, it's easier to put together successfully.

SUGGESTION: When choosing your community, take a close look at the quality of the school district in which you're shopping. If you have, or plan to have, school age children, you'll be doing this anyway. But even if you don't, a good school district may create a high demand for your home, which may help your resale value down the road.