Considering the epidemic of home foreclosures, now would be a good time to step back and take honest stock of whether you are financially ready to take on this responsibility. Freddie Mac has guidelines to help you in determining your ability to purchase and maintain your own home.

First and foremost is the purchase price. Chances are, unless you’re independently wealthy, you will need a mortgage. Most responsible lenders want to be sure you have a steady income enough to pay the mortgage, plus interest, and – in most cases – the escrow required for property taxes. Then, you have closing costs that will include the down payment, financing fees, title search, and any other costs you agreed to pay as part of the purchase negotiations. And this is just the beginning.

You’ll need to furnish the house, heat and/or cool it, run appliances, use water, and have enough left over to repair or maintain the various systems and parts of your home. Owning a house may entail a lifestyle change: less dining out, fewer expensive vacations, buying your groceries at the discount supermarket instead of the gourmet take-out place.

Though the costs may seem intimidating, home ownership has many long-run advantages. At the top of the list is it’s yours. You have an asset that will probably increase in value, as long as you keep up with the maintenance. Next is the savings. You often pay less on a mortgage than you would for rent and it’s entirely possible your federal income taxes will be reduced. Interest on a home mortgage and property taxes can be deducted from your yearly tax return. And, in the end, provided you’ve planned well, you own a piece of the American Dream.