I have seen this problem in the news and have heard it from others in regards to why home buyers are getting turned down on mortgage loans. First, the subprime loan companies are going away. These are companies that loan to riskier people. Here si what you can do before you thinka bout even applying. Have a mimum of 5% down of the cost of the loan. For a $ 100,000.00 loan have $ 5,000 in a savings or checking account. You may be required to have to put a little more down. Have the last two years of w2's and tax returns along with the last two months of paycheck stubs. Check your credit report and score, and if you need to, please dispute any inaccurate information. This will not happen overnight. You are looking at 45 days roughly on the dispute process. If you have high balances then wait until you pay them jsut about completely down. In the mean time put more money away and pay down the debt. make a sacrifice of holding off for a year if you need to. If you do not have a visa or mastercard then go get one, then wait until the credit bureaus reflect 12 payments so that the reason code no longer shows new account. Last, ask yourself this question, can youa fford it? meaning ahve you thought of possible future repairs, etc.