Don't be in such a rush. Take a few months, consult with a Mortgage Lender, see whats on your report and if there are items that you can get removed. Pay your bills on time, put some away every month for probably 6 months, use a credit card ~ but pay it off COMPLETELY EVERY month! You would be surprised at how fast your score rises and how low the interest rate will be. With this Foreclosure Crisis happening nationwide, you should still be able to find a home at a rate you can afford. In a neighborhood you really want to be in.