A computer readable system and method for evaluating and determining the users capability based on the current financial status of the user to afford the lease, rent or purchase of the real estate such as a residential house and helps the user to make such decisions related to the real estate. The system of the invention utilizes a novel approach to evaluate the current financial status of the user by evaluating the current factors associated with user and the real estate. The system generates scores and recommendations, which determines whether buying affordability of a particular real estate for the user and risk associated with the same.