To rent or to buy? That may be the question, but the answer's not always easy.

If you're looking to move into a house, but don't want to commit yourself to a mortgage payment, renting might be a better option for your lifestyle and your pocketbook, plus it also gives you flexibility to save money.

Renting

With the rash of mortgage foreclosures, fewer houses and condos are selling, and more owners are converting those properties into rentals or providing incentives to lure prospective tenants, according to MSN Real Estate. In condo-heavy cities, many owners are offering three free months to attract renters.

Most big property-management firms offer some kind of rebate for apartment hunters. The amount may be nominal ($100), but it's still free cash. If you want more rent negotiating ability, look for smaller landlords and places not always professionally managed. On average, both are more willing to work with prospective tenants.

Also, look around the 15th of the month when things are quiet. You're more likely to get some kind of deal from a landlord looking to fill a vacancy.

Another option is to anonymously post a profile of what kind of apartment you're looking for (e.g., two-bedroom apartment, townhouse, accepts pets), then let rental owners approach you with what they have to offer. Many people have found such deals on Craigslist.org and TenantMarket.com.

Buying

When it comes to buying a home, timing is everything, and if this is the year you're buying, your timing couldn't be better.

In most areas, it's a buyer's market; you'll see houses on the market with prices that have slowed, or even declined. The biggest problem many buyers will encounter is too many choices.

It's important to see everything in your price range so you can make an informed decision, but before you shop for a house, you need to make sure you're qualified.

It's a good rule of thumb to check out your credit before you provide your Social Security number and someone else does it for you. Get a copy of your credit report from Experian, TransUnion and Equifax. While it's good to know your credit score, it's even more important to see what's on your credit report before talking to a lender.

Once you're ready to make an application, only then give the lender your Social Security number. Every time your credit is inquired about, it can actually lower your score.

Next, review a few lenders, then ask for a good-faith estimate to be faxed or mailed to you. A good-faith estimate will include itemized list of fees and costs associated with your loan. These mortgage fees are also called settlement costs or closing costs, and cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges.

A good-faith estimate is intended to be used to compare different quotes from different lenders or brokers; it is not the final costs as they could be higher or lower.