Here’s how the soon-to-be-proposed rules could help:

Keep your lender honest

Mortgage lenders can get a little unruly sometimes. When they aren’t held accountable, distressed homeowners can get punished. According to CFPB Director Richard Corday, the mortgage regulations they are considering would reflect two principals – no surprises and no runarounds.

Lenders would have new requirements, some of which include providing clear monthly mortgage statements, interest rate adjustment warnings and options for avoiding costly insurance. That should help keep your ledger in the black.

Better comparison

The rules would simplify things like mortgage points and fees, giving you more transparency when comparing different mortgage offers. Lenders offering lower mortgage rates for points paid would be required to actually deliver the lower rate. Origination points that vary with loan size would be banned, but flat origination fees would still be fair game.

New rules from the CFPB would also require lenders to offer a no-discount-point loan option, which means you could compare competing offers from a selection of lenders.

The real questions you should be asking: Can I afford to purchase a home? Do I qualify for the lowest mortgage rates? Am I in an ideal financial situation for home-ownership?

So should you keep renting, or is it time to own?

Figure out your monthly payment

You’re not going to get anywhere by guessing your monthly payment. If you want a quick figure, try punching some numbers into a mortgage calculator. You’ll need the mortgage amount, the term, the interest rate and the potential closing date. Make sure to estimate high, which will give you a good way to compare your current monthly rent payment with your potential mortgage payment.

Factor in your down payment

Owning a home isn’t an automatic financial win. You may be gaining equity, but if you don’t plan on staying very long – first-timers usually don’t – the initial payments pretty much go to interest. And if you don’t put down 20 percent or more – again, first-timers usually don’t – then the investment isn’t really worth it. Any investment can quickly be erased by fees.

If you do plan on staying for a while, and have a decent down payment, then owning a home might be a good move – especially if you can get a low rate.

Estimate your rates

If you have a stellar credit, you’re in the running for the lowest rates. Right now, that means you might be able to secure a home loan for a rate under 4 percent. That’s a pretty good deal. But if your credit isn’t the best, you might want to think about improving it before you look for a home. Play around with different rates in the mortgage calculator to see the difference even a quarter of a percentage point makes.

Think about the true cost

Things like maintenance, utilities and even your commute to work can play a big part in whether or not you can really afford a home. Make sure to factor in every extra cost you can think of when you’re budgeting for a home.

Freeze your credit

It’s simple. If you have a high credit score, you’ll probably get a lower rate. You’re sitting pretty if your score is 760 or higher. But you no matter what, you should keep from using your credit card for about three months before you start looking for a home loan. A big balance on your card can hit your credit score, even if you pay it off in full before interest can accrue.

Get quoted a lot

Don’t settle for one quote from your local institution. Quotes from different institutions for a particular product can vary, so grab at least six. Make sure to shop for mortgage rates at credit unions, large national lenders and from lenders online.

Don’t forget to ask about fees. Some institutions will give you a good faith estimate of closing costs, but some will require you to apply before you can take a peak.

Keep time on your side

You’ve found the home of your dreams, but you only have an average of 10 days to find a loan before the sales contract expires and the seller can find another buyer. But that’s not set in stone. Dig deep and find your negotiation skills. Ask for more time to shop around for a loan – 10 days will probably do.

Here’s what you need to budget for:

The inspection

It’s important to have a home inspection shortly after your contract is approved – within a couple of weeks. Compared to the cost of the home, it’s not much, but it’s still pricey. A home inspection can be upwards of $300 for a good professional. And trust me, you want someone good.

The move

Most people write this off as an extraneous cost, but it can really put a dent in your checking account. Costs vary depending on the distance you’re moving.  If you’re just moving to a different house in the neighborhood, you can probably recruit family and friends to do a lot of the dirty work for free. But if you’re traveling across country, and moving an entire home, you may be looking at a $5,000 trip or more.

The appraisal

It can be included in the closing costs or paid for separately, but it’s a decently large cost any way you slice it. You’re looking at around $400 for an appraisal. Compared to the price of the home, that’s not too bad. However, you might be skipping a meal or two if you don’t budget for it.

The necessities

If you’re a first-timer, you’ll have some additional home expenses. The lawn will need taken care of, so budget for a lawn mower. Depending on your climate, you may need a snow shovel – a snow blower if you’re somewhere like Michigan. You get the picture.

In short, use a mortgage calculator or other method to figure out the down payment and loan amount, but make sure to figure in the costs you may not think about right away.

Pay off your debt

If you have more than $1,000 in credit-card or medical-debt collection, the FHA won’t allow you to apply for a loan until the debt is paid off. You need to set up a payment plan or pay it off in full before closing on your new home.

There are certain circumstances in which the rule can be waived. If you were a victim of identity theft or credit card theft, they may waive the fee. Life events such as death, divorce or a loss of employment also get a pass. But in general, you need to pay off your debt before you apply.

You’re out of luck if you’ve had a foreclosure. You’ll need to wait three years in order to qualify.

Get a credit report

You’re entitled to three free credit reports per year by law – one from each of the three credit bureaus.  Jump on www.annualcreditreport.com and pick one up to check your credit history for errors before you apply for a loan.

Why get an FHA approved loan

These loans allow home buyers – usually first-timers – to secure a loan without a large down payment. Generally, the down payment must be around 3.5 percent or more. The FHA insures these loans, which reduces the risk for the lender.

In return for the lower down payment, you’ll pay mortgage insurance, which is bundled in with your monthly payment. But if you have excellent credit and a solid income, you can still get the lowest mortgage rates. Just make sure to pay off your debt well before you apply.

Create a budget

It’s the first step to deciding whether or not you can afford a new home. But don’t only budget for the mortgage payment, budget for all of the expenses. That means figuring in closing costs, mortgage insurance and other incidentals. If you’re buying a pre-owned home, think about improvements that you’ll have to make.

Get prequalified

In order to really figure out what you can afford, think about getting prequalified for a loan. Visit your bank or search for lenders online to find one offering the lowest mortgage rates.

Do some calculations

In order to accurately estimate your mortgage payments with a mortgage calculator, or with your broker, you’ll need to have your facts straight. Know the mortgage amount and the term. Remember, your monthly payments will be lower with a longer term, but you’ll pay less in interest with a shorter term.

If you get prequalified for a loan, you’ll have a better idea of the interest rates you’ll be paying. Right now the best rates are lower than 4 percent. If you have excellent credit, you may be able to get those rates.

The Federal Open Market Committee met on Wednesday to give the latest economic forecast and make its latest decision on rates. The decision was to keep its benchmark rate at near zero until at least late 2014, which was to be expected – it’s been there since the financial crisis in 2008.

Here’s what you need to know:

Indirect impact

The Fed doesn’t control rates directly. But the federal funds rate is what banks pay to borrow money from each other. So, if the funds rate is low, theoretically banks have more money to offer the consumer. That means you can borrow at a lower interest rate.

Rates on home loans are generally influenced by movements in the market, but the Fed has a big influence as well. The federal funds rate affects lenders’ borrowing costs. A lower rate for lenders generally means lower rates for the consumer.

The economic forecast is essential

Investors pay extremely close attention to what the Fed says. Mortgage rates will generally stay low if the Fed gives a gloomy economic forecast. But if they give a strong forecast, rates could move higher.

Stimulus movements

If the Fed really wants to move mortgage rates, they have the power. They can buy mortgage bonds and U.S. Treasuries to increase demand for those investments and keep rates low. If they want rates to move higher, they can sell those bonds.

It looks like rates will be staying relatively low. If you’re looking to buy a home, you can still get in on the best deals. As of April 26, 2012, the current average 30-year fixed rate according to Freddie Mac is 3.88 percent.

The run-of-the-mill

Standard home loan calculators can help you figure out your estimated monthly mortgage payment on a theoretical loan. That’s good for budgeting – something a lot of homeowners fail to do. It can also provide a way to see how extra payments will reduce interest payments on your amortization schedule. All you have to do is input your mortgage amount, term, interest rate and the date you closed on your home. Then type in an extra monthly, yearly or lump sum payment and you’re set.

Refinance calculator

Some websites offer a break-even calculator for refinancing. If you’re thinking about refinancing, these are very useful little tools. It can help you decide if refinancing is really worth it in the long-run. You’ll enter all of the information you have for the old and new loans – loan amount, interest rate, appraised value of the home, etc. Then it’ll give you a graph showing when you’ll break even and how much refinancing will save you, if at all.

ARM or fixed

An adjustable rate mortgage can be useful in certain circumstances. It gives you a very low fixed rate for a specific number of years. After those years are up, your interest rate starts to rise. If you’re only planning on being in the home for a short time, it could be worth it.

A fixed rate is the safe way to go. There are no surprises when your rate starts to rise. The ARM or fixed-rate mortgage calculator gives you a good way to compare the two. It will even provide you with an amortization schedule.

Lenders look for the four Cs when thinking about extending a loan to a borrower – capacity, capital, collateral and credit. You may be a little skeptical about your status in those areas, but chances are you’re better off than you think.

Capacity to pay it back

Lenders want to know that you’ll be able to pay them back. After all, they aren’t in the business of free money. Be prepared for them to take a gander at your current employment status and employment history. They’ll also want to check out your income, savings, debt and other financials.

Capital to pay

Lenders take into consideration the savings and assets you already have. That includes any assets that can be readily available for some fast cash. Managing those assets tells lenders that you have the ability to pay the loan back.

Collateral against the loan

Your total value – the value of all of the assets you own – basically serves as collateral for the loan. You may receive a better loan with a higher asset value. But that’s not to say that they’ll only let you borrow if you have a lot of assets. It may just help determine the loan amount.

 Credit score

Your credit score is a big factor in determining if you qualify, but not that big. According to Freddie Mac, even borrowers with average credit scores might be able to secure a loan if they have the other Cs. But keep in mind that you’ll most likely receive lower mortgage rates with a higher credit score.

Weakness in one of the four Cs is OK. You’ll still have a good chance of securing a loan. Ideally, you should be strong in all of those areas, but it’s not a requirement. Work on the Cs before you starting shopping.

Here’s what to watch for during the process:

Pay in multiple ways

Extra payments can be made in pretty much any frequency. Setting up a payment through your bank is one easy way to do it. The bank will automatically send a payment to your lender. All you have to do is specify how often.

Other ways to pay include adding an additional sum to your monthly payment or sending in an extra check between scheduled installments. It’s not complicated. If you want to pay down more of your principal, the lender will make it easy on you.

Keep it up-to-date

Additional payments are applied straight to the principal, not to the interest. So you’re not really making another payment. It’s a curtailment. You’re decreasing the amount of principal you owe on the loan, which consequently reduces your interest payments. But you can only make a curtailment to your loan if you’re current. If you’ve missed a scheduled installment, you’re out of luck.

Check with your lender

You don’t necessarily have to ask your lender before you send a check, but it’s important to make sure they know what to do with it. Send a note with instructions to apply it to the principal amount. It’s also a good idea to call and make sure they received your payment.

Quick tip: if you’re using a mortgage calculator to find out how extra payments will impact the interest you pay, you’ll need to check the amortization schedule. Input your payment and then look at the total interest to find out how much you’re saving.