Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. Not saying that a few late payments or missed dates will drastically affect your approval, you do need to stay on top of your credit file. A Good Credit Score will help you in your Approval Process, your interest rate, and your terms or repayment.
With most Banks and Lenders in town, you have to a middle Credit Score of at least 620 and higher to obtain their financing. There are Lenders in town that will approve a mortgage with a score lower than 620 but they are very rare and your interest rate will be higher.
If you have had some bad luck in the past and have some credit blemishes on your file, here is some info for you to know about how the lenders look at these certain issues:
Bankruptcies- These will normally remain on a personal Credit file for up to 10 years but Most Banks and FHA loan programs will Approve a loan if the Bankruptcy is at least 2 years old from the Date of Discharge.
Reposessions- If you have a Reposession on your credit file, These will last for 7 years but most banks will follow the 2 year rule on these as well.
Foreclosures/Deeds in Lieu- If you have had a foreclosure or issued the Deed in Lieu of Foreclosure these will stay on your credit report for 7-10 years. Most Lenders will approve a loan after a FULL 3 year seesion has passed on the foreclosure as long as the rest of the credit report remains in good standing after the issue.
Credit Consuling Programs- These programs are designed to help an individual with their current debt issues. What most consumers fail to understand is that most Lenders look at this just as bad as a Foreclosure or Bankruptcy proceeding. These programs will remain attached to your File for 7 years and most banks will wait to issue an approval for up to 5 years following the final arbitration agreement.
Even with these issues on your file you can still receive financing on your next home. You might have to wait till some of these issues are a little bit older or you might be able to find Alternative or In House Financing that will allow you to obtain your homeownership pride.