I want to buy a house.

If your credit is poor, buying a house requires extra effort. Before beginning the search for your dream home, determine what monthly payments you can realistically afford. Research the local market to see what houses are selling for and how much each month's payments will be. Be aware that you may pay slightly more than someone with an existing conventional loan from the bank; thus, be mindful when deciding what you can afford.

Finding a home you can afford without borrowing money can be more challenging. You will have to look around more to find what you are willing to settle for in terms of features. Consider whether living with just one bedroom is possible or if three is necessary; are two cars allowed in your garage or do you need a carport? Is living on one level necessary for health reasons; is proximity to schools important? Make a list of essential needs before searching any further.

Make a list of all the items you're searching for, such as a hot tub or pool, walk-in closet, wood floors, decks or another type of architecture. While it would be ideal to find a home that meets all your desires, first focus on finding one that meets your needs. Many of these features can be added later on when selecting your new residence.

On a third list, make a list of items you don't want in your home. This could include too many stairs, fixer-uppers, undesirable areas such as those close to freeways or far from downtown.

It may be that you do not have the luxury of being too picky. You might be able to downsize while building credit and building equity in your home, then trade it in for a larger one later on.

Rebuilding your financial situation is possible. However, if you attempt to purchase more houses than necessary, it could prove more challenging than anticipated. Exercise caution!