My first apartment was a complete mess. I moved there because it was cheap and close to work. The first night I cried because I couldn’t believe this was my life. It was the traditional crummy, first apartment. (I’m happy to say that I’ve since progressed to some nicer apartments!)

Renting an apartment, much like buying a home or car, can be a stressful and sometimes daunting task. Often young renters don’t know what to look for, what questions to ask, or what is expected when renting an apartment. Being on your own for the first time can be so exciting that you can overlook details that will cause a disaster later. Below are tips to help make your apartment search smoother.

Make sure you can afford to live on your own. Before you make that leap from your parents’ home to your own place make sure you are financially ready for the responsibility. Your rent payment should not consume more than 30 percent of your monthly income. You may even consider getting a roommate to share the cost of rent.

Be cautious of incentives and deals. Not every deal turns out to be so great. Sometimes it’s just bait to pull you in. Be wary of signs that read, “One month free rent” or “Special savings.” Often apartment complexes will advertise rent for a certain price, but the rate will increase afterwards.

Understand the total cost of the apartment. Rent isn’t the only financial obligations when leasing an apartment. Consider other monthly costs such as utilities. Some apartment complexes require you to pay for convenient services like trash pickup or assigned parking.

Live within your means. There’s a lot to consider when renting an apartment – location, price, number of bedrooms, etc. A two bedroom apartments is more expensive than a one bedroom apartment. Apartment prices also vary depending on the neighborhood. Don’t try to take on more than you can handle. Maybe a studio apartment (sometimes known as efficiency) is lighter on your wallet than a one bedroom apartment.

Check your credit report. Many young adults may be surprise to know that their credit report has a huge impact on their ability to rent an apartment. If you have a low credit score you may still be able to rent an apartment, but the leasing office may require you to pay first and last month’s rent in advance along with the deposit and other fees. Ouch! That’s expensive. However, a high credit score can mean extra savings and less up-front cost like down payments, fees, and advance rent. To find out what’s on your personal report check out AnnualCreditReport.com.

Read the lease agreement. Being unaware of what’s in your leasing agreement can cause a lot of financial problems. For example, know the apartment’s policy for damages you cause to the apartment. Some apartments will charge you for certain damages like a hole in the wall or a broken window.

Consider renter’s insurance. You may consider it an extra bill, but like health or auto insurance, renter’s insurance can save you money if something were to happen to your apartment. Renter’s insurance covers damage to personal property in the case of a fire, hurricane, or some other natural or foreseen disaster.

Finally, leasing is a two-way street of responsibility. If you feel your landlord is neglecting certain responsibilities, research your state’s tenant rights.

For more, read When renting makes sense.

The number one mistake most buyers make is underestimating the cost of homeownership. You may be able to afford a mortgage, but that doesn’t mean you can afford to be a homeowner. There are tons of other expenses, outside of mortgage payments, including taxes, insurance, maintenance, and periodic home repairs. Being a homeowner can be very expensive and a bit overwhelming at first, but it is still the most important investment most people will make.

The housing market can teeter from good to bad, as we’ve seen with the recent housing crisis, but home values tend to go up building significant equity over time. In fact, according to Lending Tree, home prices in the U.S. rose by three to six percent annually during the past couple of decades. In many cases, owning a home is how most families build wealth.

In honor of National Homeownership Month and the many incentives to buying, consider taking your piece of the American Dream and become a homeowner. Before making the leap into homeownership, it’s important to do your homework – make sure you can afford the cost of owning a home and make sure you understand the true cost of buying a home. The following are a few ‘hidden’ costs to regard when buying:

Title insurance – the fee that’s charged at closing that protects your investment in the event that the previous owner did not actually own the home that was sold to you. This fee is based on the value of the home.

Legal fees – is not required, but is often recommended because buying a home can be a complicated legal transaction. Home transactions typically use boilerplate forms for everything. If so, the legal review may not be required.

Private mortgage insurance – is charged when the house is being purchased with less than 20 percent down. If you have a loan that requires it, count on paying a couple month’s premiums in advance.

Notary fee – is charged at closing and is required to swear that you are who you say you are. This could cost around $50.

Lender/broker fee – this fee is charged by lenders and brokers to prepare purchase documents. This fee could cost between $600 to $1000.

Appraisal fee – this fee is charged to determine fair market value and cost $250 on average.

Survey fee – is the fee that’s charged to determine the exact boundaries of the property. You won’t need to pay for this fee if an existing survey can be used. On average this could cost $150 to $400.

In addition to closing cost and other fees required to get the keys to your new home, don’t forget the hidden cost to actually live in the home. Moving expenses, utility deposits, pest control, paint and new carpet are all additional cost to consider when buying a home. For more information on buying and owning a home, visit www.hud.gov.

For many, unraveling the maze of eligibility requirements to qualify for mortgage assistance can be difficult.  Thankfully, there is a new free service called Mortgage Relief Online that helps U.S. homeowners to determine if they may be eligible for mortgage relief under the government’s new Making Home Affordable plan.

Mortgage Relief Online is sponsored by MyFico (the company that offers the FICO credit score to millions of individuals each year), the Homeownership Preservation Foundation (nonprofit dedicated to reducing foreclosures and preserving homeownership), and Money Management International (us). The program is designed to help reach the approximately 7 to 9 million U.S. homeowners that qualify for a loan modification or refinancing under the Making Home Affordable plan.

If you are interested in Mortgage Relief Online, please rest assured that the service is completely free and confidential.  No one is obligated to purchase any product or enroll in a subscription to use the service.