We all know that it is not a very good time to buy a home right now, especially if our credit is less than stellar. To be honest, there are some really good deals to be had right now, and taking advantage of that is a good thing if conditions are right for you. Banks are obviously a bit anxious today due to the way things have been going this past year, but if you are on the up and up, pay your bills on time, then chances for securing a mortgage are in your favor.

The banks want to see this:

1. A good FICO score. This is one number you should always be concerned about, and work towards improving. If you are like so many other people who have had to use a credit card, be aware that the CC companies can make things extremely tough on you. Don’t let these lag to stay on top of the mortgage payment if you possibly can. Right now, the FICO score is a big number.

2. Have a good down payment. Many people have made the mistake of not only borrowing for the mortgage, but have also borrowed for both down payment and closing costs. Not a good idea. If you can’t save up a down payment of at least 10%, you can’t afford the home anyway.

3. Take a VERY good look at your budget. Be honest with yourself. Your mortgage payment should never be more than 26% of your income. If you make $4,000 a month, then your mortgage payment should never be more than $1,000. Often, people don’t take into consideration the “incidentals” of daily living. That $3.50 latte on the way to work each day and the need for the latest Stephen King novel are often never figured into the monthly budget. If you spend it, budget for it. Figure your “play money” into your budget, and stick to it.

We hear a lot of scare tactics in the media about buying a home these days. Although banks are a bit antsy, they also recognize a good deal when they see it. If you try to gloss over anything about your finances and are vague about income, don’t waste the banker’s time. They will very quickly show you the door. The Fed is looking at the banking industry right now with a very eagle eye, and for good reason. Buying a home today is no different than it was in our parent’s day. The rules are the same. Follow them for success.