First I am going to refer you to a website that was created to help purchasers such as yourself.
http://www.maar.org/WHM/ . I would highly suggest that you go to a loan officer at your bank, and apply for a mortgage, immediately. There may be a fee of $35-50 but most loan officers will waive that fee. If you are considering purchasing a home, now is the time to do it. Are you not aware of the $8000 tax credit that is available until April 30th? If you purchase a car, you may get too much debt and not be able to purchase a home. A good loan officer will look at your credit, and let you know where you stand. If you have any credit issues, please contact the non-profit credit counselors listed on the welcomehomememphis.com website. If you have any other questions, please email me.