It’s time to buy, but your credit needs help. What do you do?

You find yourself yearning for a place of your own. It could be a general feeling that the time is right. Or a big life change. Or it could be that you’ve got a roommate who has broken the code of touching your stuff in the fridge one too many times. Whatever the reason, if it’s your first home, establishing or rehabbing your credit may be something you need to consider.

Credit and Downpayment. Where to start?

A good starting point is understanding your particular situation. First, do you have a budget? If not, take a look at your income, your savings, investments and your obligations (bills, debt, etc.) – monthly or otherwise. Get it all down ‘on paper.’ You can use online budgeting tools and spreadsheets of course. (Central has savings calculators, mortgage calculators and other online tools you might find helpful.) Understanding is the first step towards establishing a plan to get what you want.

Second, you should check out your credit score. Maybe you’ve had no hiccups and your score is perfect. Even then, remember that credit bureaus aren’t perfect. Sometimes (about 20% of the time by some accounts) they make mistakes that need to be addressed. It may take time to unravel and set things straight with the bureau. And if you’ve had your own financial hiccup, you’ll need to set about a strategy to repair and rebuild.

Having established your budget and gotten familiar with your credit score, you can now take the next step. Examine what you’ve got and ask a few key questions. Is there a specific account set aside for down-payment savings? It’s a good idea. What is going into it on a monthly basis? If it’s not enough, are there any big expenses you can cancel out in 2016 to build it? Perhaps you take a “Staycation” instead of that big trip you took last year? Or maybe you keep driving the car you’ve got paid-off rather than taking on a new car loan. You can put that ‘car payment’ directly into the house savings account. Lastly, if you have a financial windfall expected, such as a tax return, direct 100% of that to your home savings account.

There are also small things you can do. Do you spend money without batting an eye at the coffee shop three times a week as a small treat? Do the math. If it’s a specialty beverage that costs $4 when you factor in tip and the occasional muffin thrown in, that’s $12-$16 a week. Multiply that times 52. Then throw in the money spent going out for lunch (because it’s so easy to skip making your own lunch). You see how it can add up! A little forethought and planning can go a long way – just sweating the details can make a difference. Make your own and put that spare cash into your home savings account.

One more strategy is to make a temporary lifestyle change. If you’re in a two-bedroom apartment, can you move into a one-bedroom and put the difference into your account? Or perhaps you can move in with relatives for a short period of time when your lease is up and save the entire monthly payment for a few months. Maybe you trade services – mow the lawn, housesit or babysit kids, or find other ways to avoid feeling like a ‘freeloader.’ Speaking of services – if you’re employed, perhaps you could be employed more. That’s right. A second job or taking on some freelance projects is the perfect way to fill that ‘straight-to-savings’ fund without stealing from your current budget.

So there are some strategies to help you reach your down-payment goal. We’ve basically lumped them into three categories. Three keys:

• Establish a budget and get familiar with your credit score.
• Get creative to develop savings tricks big and small.
• Design work and play to direct more money toward down-payment

As your fund gets filled, you’ll start to look at buying. There are ways to get there just a bit quicker. If you’re a first-time buyer, you might look at FHA loans, which allow for a low down-payment rate. You might also be blessed with family willing to make a one-time gift – these are acceptable in certain situations as part of the down-payment. Also, there are a number of loan programs, with special rates and terms available based on buyer profile, geography or other factors, such as military service. Just make sure to know the details of the program and that it fits your profile as a buyer.

Making it all work depends on ‘you looking out for you.’ Figure out your landing date – when do you want to be in a new house –and work toward it. It’s not a cakewalk, but you can do it. Be vigilant and have fun with it - don’t make yourself miserable! It shouldn’t be drudgery – this is you taking control. Good luck. Happy saving. And happy house hunting!