"I want My Own Home" ( but my credit sucks)

If this is truly what you want, stop wining and do something about it. When buying a home the most important thing, next to having a job, is your credit score.

In todays market you need a min. credit score of 620 to get an FHA approval. If you do not know what your score is, go to My fico.com and get a copy. You will need to see what your score is with all three bureaus, Equifax, Experian, and Trans Union. Lenders usually view all three but mainly use the middle score when qualifying you.

After you have your scores in hand and know what you need to work on, then take the time to sit down and make a plan and also set a time to complete that plan.  One year should be enough to make a difference.  Do not take the easy way out and file Banksrupsey, that will only delay getting your new home even longer. You can on your own fix a lot of things, but if needed, get help.

Lets get started on your budget, only you can do that and make it work. Take a pad of paper and list your bills and your income. Make sure all the bills that are on the report are listed, plus all your regular bills, forgetting one bill can mess up a budjet and get you off track. Put all your credit cards on the table, everyone, used and not used. Pick one that you have had the longest and if it is not maxed out keep that one on hand to use, pay on it if mnecessary, so you can use it. Put all others away, out of sight, out of mind. If this doesn't work, cut them up. Do not close them out, your goal is to pay them off not close them. Lenders on the whole do not mind that you have the accounts but they do want to see you maintaining them at a ballance not to excide 1/3 of the credit limit. 

As for your bills, pay them all on time, never be late, even a day, late payments will kill a score faster then anything else. After 6 months, you will,if you try at all, see some success, do not give up, if you need another 6 months, so be it. 

Remember do not spend more then you make. if you can not pay an item off at the end of the month, or two months max, you don't need it right now. Maintaining a balance is ok in some cases, as long as it is below the 1/3 mark. 

In your budget, you do need to allow for extra's, something always comes up that you don't expect. Carry with you at all times a small pad of paper and take note of every dime you spend during the day,you will be suprised at the things you buy that are not necessary, this will help you stay on track, when you hit your daily limit, stop spending. As you pay off your bills this extra money will grow and you will have more to spend or save. You will have to give up things at first, but if you do it right. it won't be for long. Just giving up cokes and drinking water will save you a bundle over time.

When you get your plan completed make copies, put one on the Frig. one in your car and one on the bathroom mirror. This will also keep you on track. 

It will be hard at first but like a good diet, it will get easier over time and before you know it, you will be able to open the doors to your new home. 

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