In this case, don't go opening any charge accounts, finance a car or otherwise open new credit accounts until you have your loan otherwise you may risk having "shallow credit" or a low credit score.
If you have poor credit - that would take more time to fix, depending upon the nature of the problem. I would be happy to discuss this with you or see if we could get a pre-approval for you through our underwriting department.
If you are a US citizen and have no recent foreclosures or bankruptcys, there are many large banks and specialty lenders who can help you with what is called "building alternative credit". They look at rental payments, utilities, phone bills, car payments and other regular bills in your name and make sure that you have been paying these on time for the past 12 months. If you have, you can probably get a loan. Opening a couple of $200 or $300 secured credit cards will help you build credit. Have you done any of this yet?
A good rule of thumb is that you can afford and get approved for a home about three times your total household income. With $12,000, you have a downpayment for a home over $300,000. If you have not established credit, the greater your downpayment, the more favorable you will be to a lender.
Ryan Estes is a VP at Bank of America Home Loans and heads a team of mortgage professionals. You can reach his assistant, Leanna Wooten at (972)526-1651 or (877)544-2429 firstname.lastname@example.org. Or, try Ryan at 919.367.4012 or 704.919.4715 Ryan.Estes@BankofAmerica.com They require a 620 minimum middle credit score. Bank of America offers job loss protection, interest rate locks and a wide variety of loans.
If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. ...and if you like this answer, please give it a "thumbs up".
You should go to a mortgage broker at your local bank and ask how you can establish credit for yourself. If you cannot establish enough credit to meet financing requirements then you may want to get a co-signer with good credit and required income to do the mortgage and then you can provide the down payment and go on the deed.
I hope my answer helped you.
Most sellers want cash so this will not work with everyone but there are sellers out there who understand that selling with terms can help sell the house.
Many MLS systems have owner financing as an option so you might want to ask you local agent if they can look up listing where sellers have offered this.
You may still qualify for some first time buyer assistance programs with non traditional credit, and FHA.
If you have no credit. Meaning you have no bad or good credit and are gainfully employed.
FHA will have a program for you. Try to use a local FHA expert who understands the underwriting requirements.
Try opening an account with a credit union they are very good at helping local borrowers.
Hope that helps you get in your own home.
Best of luck to you!