They will either tell you that you can
1 get a loan now (or)
2 doing these things you will be able to repair both of your fico scores so you can buy later on.
Either way you will have options you do not now.
The buyers bribe of (up to) $8k goes away on 4-30-2010. If you can get it... nice bonus... if not... waiting you will still be able to get a house in a year or more.
Below I have several blogs about the house buying process. If you like take a look. They cover a lot of things that are helpful to know... one buyer to another...
550 forget it. Sorry, not going to work unless a lender really rips you on interest rates.
it could be possible to talk to a lender who helps with credit repair to improve his score and yours.
A loan could be made now based on 690 fico score alone.
Generally speaking yearly income x 3 = safe mortgage. Make sure you have money for a down payment. Closing costs want more money. Then you should have at least $1,000 in case some problem comes up.