Don't you hate the first time you make a certain kind of purchase? We've all been in the situation when even the tidbits of advice you have heard over the years don't fully prepare you for the transaction.

The first time I felt this way about a deal was when I bought my first car. I made some goofy decisions and even though I did it half right I still felt like I could have gotten a better deal if I had been through the process before. As my wife and I are exploring home ownership I can't help but think that I am going to feel the same way about our home purchase.

Yesterday I found a great resource which really raised my hopes for taking out a mortgage and buying a home without remorse. The aptly titled article, "How to Get a Mortgage" on Mahalo.com breaks down the process of getting a mortgage into bite size morsels of knowledge so detailed and applicable it should be printed in pamphlets and handed out in front of every bank!

Anytime that something is nationally recognized as "The American Dream", there's a good chance that it's overrated.

In the midst of record foreclosures, and plummeting home values leaving people upside down on their mortgages (i.e. they owe more than the home is currently worth), the American Dream has turned into the American Nightmare for too many families.

But let's not write the elegy for homeownership just yet: the reality is that a home is the best investment most people will ever make and, according to a 2004 Federal Reserve study, the average renter had a net worth of $4,000 while the average homeowner's net worth was $184,000 -- homeowners are 46 times richer than renters.

Don't miss the rest of our series on Overrated people, places and things!

It's likely that that gap is smaller because of widespread declines in home values but, long-term, most people who want to be financially secure should look into owning their own homes. But in order for a home to be a good investment, it has to make sense. Here's how you can tell if it makes sense:

• Is it cheaper, or at least comparable to, renting? Add up monthly mortgage costs, taxes and other expenses on a home you're considering buying. If it ends up costing a lot more than you could rent something comparable for, there's a good chance you'll be better off continuing to rent and investing that extra cash. Don't forget to factor in the mortgage interest tax deduction.
• Will you be staying there long enough to justify the expenditure of funds on closing costs and then commissions when you sell?

Homeownership is a wonderful thing, but it's not the free lunch that it was sold as in recent years.

Whether 'tis nobler in the minds of your parents and friends to rent; than to suffer the slings and arrows of home ownership, I have a few calculators that will help you make the decision based on your unique situation. Owning a home is an idea which is drilled into us from the moment we become financially aware of the cost to live someplace. Many people consider renting to be throwing away money which you could be using to build equity. In reality the true cost benefit of owning a home relies on many factors including home price, rental increase, home value appreciation and length of ownership.

The housing market was given a huge boost in recent years by lax lending standards that enabled a ton of people to buy houses that they never should have been able to using gimmicky mortgages. The result has been record foreclosures, and lot of people who pursued the American Dream are regretting it. Now they're back to renting and a lot of people witnessing the carnage are wondering: Is homeownership really worth it?

In a column in Parade, Mike Hammer lists 4 "great reasons to rent": renting can save money, homeowners' tax deductions are overstated, there are more options available to renters, and renting gives you flexibility. Hammer writes:

According to popular myth, renters are just throwing their money away. But the reality is that when you buy a home, you're paying for closing fees, mortgage interest, property taxes, private homeowners' insurance and maintenance -- costs that return nothing on your investment.

You can't watch television, pick up a newspaper, or peek at a personal finance blog without hearing doom and gloom about the American economy. Everywhere I turn it's "housing crisis" or "subprime meltdown" or some other dire-sounding catch phrase. And while I'm all for personal fiscal responsibility, sensible budgeting, and living within one's means, sometimes the cries of "danger, danger" just get to be too much.

Every news organization is polling consumers to see how dismal life has become - and they're all telling tales of woe. Yesterday's poll asked consumers about purchasing a home, and 60% of consumers said they definitely won't buy a house in the next two years. That's up from 53% in a similar poll conducted 18 months ago. And this is something that should cause us to panic? I'd actually think this is something good... the numbers haven't changed that much even though the media claims that we're on the brink of disaster.

Besides, is it really all that bad if consumers are going to wait a little longer to buy homes? Maybe that will give them a chance to save more and become more financially prepared for all the costs that go into home ownership. While this may be disheartening for those trying to sell their homes now, I say that this is good news when it comes to having homeowners who are more ready for the financial responsibility of owning a home.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.