Interest rates are at record lows and the housing market is red hot. Isn’t it time for you to jump into the deep end of the pool and buy your dream home before you get priced out of the market? Maybe. But you need to be honest with yourself to determine whether you are financially ready for a home purchase. For some – especially for a short period of time – it may make better financial sense to opt for renting your dream home over buying it at first.

You've finally decided it's time to buy that home you've been dreaming of. You know, the one with the white picket fence, two car garage, and Jack and Jill bathroom set up for your very own little Jack & Jill. But finding your dream home takes time, effort, insight and a little more than daydreaming your lunch break away.

Here are a few things you may want to add to your dream home checklist, all related to location, location, location.

You’ve read what we have to say about Dave Ramsey's way of living and gotten your financial house in order, making you ready to begin the great house hunt. But before you dive head first into gathering your top ten list of dream homes, you may want to learn a little more about what you'll be paying for that home. 

You’ve set a budget for your monthly payments, but those payments could vary greatly depending on the interest rate you pay for a loan. And the interest rate you end up paying may vary for a number of reasons, too. 

For a 30-year loan on $150,000, the monthly payment of interest and principal at 5 percent would be $805. That same loan at a 4 percent rate would be $716 a month. It's kind of amazing to see the difference one little percentage point can make.

The interest rate you pay is largely determined by your credit score, which includes: