What should I do here?

[anca21bi]

I'm getting a signing bonus in my monthly salary at the end of this month. I was thinking about using $1000 to put into a secured cc. But should I just put into my savings account and build on that since I hope to get pre-qualified for a house in March? I am geting some down payment assistance and fee waivers because of my occupation, so I don't have to come to the table with much of my own money.

I only have 2 revolving accounts-Cap 1 w/$320 Cl and Fingerhut w/$200 Cl 

A bunch of installment accounts for student loans, and 1 car loan.

I don't have much to call savings either, but my DTI is only about 20%. I just have scores in the mid to high 500's and wanted to build on them a little more with a revolving account for the next 3 months. I feel like I need someone to give it to me straight about my credit and getting approved.

[IOBA]

Money in the bank is a good choice.

The lender usually requires homeowners insurance to paid in full prior to closing, plus you have to bring money for escrow and closing.  The lender wants to see about 2 months worth of reserves in the bank.

[anca21bi]

So it looks like my money is going in he bank.

[IOBA]

That sounds like a good choice.  

Keep your debt as low as possible.  Have you figured out how much house you can afford?  How much in monthly payments total (including insurance and taxes)?

Do you have one debt - to include student loans - that you can hurry up and pay off?  It will reduce the DITI a little bit.  And sometimes, every little bit helps!

[anca21bi]

I pay $1300 in rent right now. That is the amount I would like to stay at including insurance and taxes. I think that is around the $175,000 area, I'm not too sure.

Yes, all my students loans are consolidated right now. I do not have to repay back until 2015 and will be on a income standards based repayment plan, that will be around $200 a month with what my expected income will be that year. I will have total student loan forgiveness after 10 years since I am a special education teacher. So I plan to pay as least as possible.