[Sunflower03]

Hi:

I am in my late 20's and am looking to purchase my first home within the next few months. I have been on my job for 3 years, and I make a decent salary for my age. I ran my credit the other day and it looks as though I owe about $800 on my credit. I recently purchased an 06 Chevy, interest rate of 12.34 for 72 months. I absolutely dislike my car but I am driving it. My credit score is only 600 due to a loan in which I defaulted on a while back. I really want to purchase my first home within the next year. What can I do to purchase my home and get out of my car? Can you please help me??

[ScottGem]

First put your car up for sale. Next save as much as you can towards a down payment. With your lower credit score (the reason for the high interest rate on the car loan) you will need a larger down payment to get a decent rate.

[clouded]

Your going to have some problems ahead of you.
1. You have to pay off the $800 before the mortgage company will even look at you for a loan
2. if you have a 06 truck with a 12%apr, your probably upside down.

[Fr_Chuck]

First you need a budget and you need to save money, you did not mention how much savings you have to put toward a down payment,

As for you Chevy, you also did not say how much down you put on it, since it is a 06 you have had it a year or less at this point and if you did not put a large down payment, you owe more right now than its value is. so without paying out money out of your pocket there is little way to get rid of it. So you keep paying on it, till you can sell it for what you owe on it, or try and find someone that can take over payments ( if that is allowed on your loan)

The how old is the old debt, you need to cleam that up, to clean up your credit.

While you are doing that, if you need to get a second job to help save money to buy a home and pay off your other debts if needed.

Some things to look for in a home, if you are handy in repair, find the worst home in a great area, or a older home in a up and coming area, You want something that will grow in value over time,

And never over buy, if you can only afford... thousand for a home, don't buy more home because of this or that.