I would like to start the process of buying my first home...

[BEELZEBOB]

One of the biggest factors for credit score is average length of credit. If you open a new card or two it is going to shorten the average and bring down your credit score.

Another major factor is your percentage of credit utilization. What is the percent of money you owe versus your total credit limit?

Do you have any collection accounts or negatives on your credit report?

I just learned all about this as I was cleaning up my credit score.

No collections or outstanding negatives. Just went from having absolutley no credit whatsoever 5 years ago, to now.

I think I currently owe just over 50% of my total credit limit. Just did a 50/50 cash vs finance on an engagement ring. I will have that paid off in full by June/July

I'd buy something less than $200K. Lots of foreclosures the banks are trying to get off their books. If you are a veteran, it is easy to get a VA backed mortgage. Alot of houses require a 20% down now. I paid $130K for my house in 2006. Brand new house on a acre. Last month a house on the same block, same size and age was listed for $89K. If I lived in the metro area, I'd buy a house west in the mountains, with a little land. Do you bank with a bank or a credit union? Ask them about any foreclosures they have on their books. $150K house with 20% down is $30k.
I'd buy a house where you can easily meet the payment. Being foreclosed upon can wreck your credit. As for building credit rating, make sure any defaulted credit cards and other bills outstanding get paid off.

I want that 90K house! LOL where do you live? I bank with Chase.

We found a really decent pace in Golden for $190 with a decent amount of land.

[Scogin]

No collections or outstanding negatives. Just went from having absolutley no credit whatsoever 5 years ago, to now.

I think I currently owe just over 50% of my total credit limit. Just did a 50/50 cash vs finance on an engagement ring. I will have that paid off in full by June/July

My understanding is that optimal range is around 7%. They want to see that you are using your credit but are not maxed out. If you are at 50% utilization paying that down to 7% should get you 10 to 20 points easy.