The hardest part of saving for a new home for many people is putting away the money for the down payment. If you have less than 25% of the purchase price to put down you will likely need to purchase mortgage insurance from whatever lender you have chosen. The reason for this is simple. It's protection for the lender against default if you can't keep up the payments.
Remember that we all need a personal banker, someone who lends a friendly face to the giant financial institutions that dominate our lives. With your personal banker on your side, you can get discounted loan rates and better repayment terms. It's all about getting and maintaining a decent credit score so that you be able to qualify for conventional bank loan.
There are several things that you can do to rebuild a damaged credit score or start a new one. One of the first things you might want to try especially if you're younger is to start off on the right foot and build a credit history with your first credit card. Of course that doesn't mean that you should spend foolishly on your first card , but it is all about showing the banks that you can be responsible with the credit that they have sought fit to give you.
Remember too that this is not a situation where more is better. While the banks like you to try and establish your credit rating, they are not interested in seeing that you've taken every credit card that's been offered to you. Instead they would much rather see that you have started off small and are acting in a responsible manner. By showing them this kind of accountability, you'll be on your way to either repairing or establishing the kind of credit that will get you a conventional mortgage.
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