Step 1 and this won't be easy. It's finding out what your net worth is because "I don't know" is not going to be an acceptable answer.
For the most part almost everyone is living from one pay check to another and then all of a sudden we get an urge to purchase a house because we have all the toys that we want already, we have done our traveling and it's time to settle down.
I'm going to take a wild guess here and say that you are driving a vehicle that is nearly new, you have a couple of credit cards and are between 10 to 30 thousand dollars in debt. If this is you, you are just one of many.
So you have all of this debt and that is obvious to anyone who is looking at giving you a loan or a mortgage and that debt needs to have a reason to be there. As in each debt needs to have a asset to give it a reason to exist.
Saying it a little bit differently is comparing assets to liabilities an asset is something that can help increase your net worth. Most people have very few assets. An asset could be owning a business or a part of a business, it could be having money invested in a bank account, or invested in stocks or bonds. These assets that you have are going to have to be tangible or measurable. This means that even higher education does not count as an asset.
So to get from where you are financially to where you need to be you are going to have to do a couple of things, make it three. 1 clear off your debts, 2 start saving even if it's just a small amount of money each week. 3 start learning about money. Money is a tool and if you can learn how to put that tool to work eventually that tool will start to outwork and out earn you.
One thing I've really noticed over the last few years is that a lot of us have stopped putting a value on our time. Our time is actually very limited and we tend to use a lot of it watching tv, socializing with our computers and our tablets. We also spend a huge amount of time on YouTube watching endless videos.
A few years ago now I decided that I wanted to get ahead and turned to YouTube to start my learning, over those few years I've learned some html, php, Wordpress, Drupal, Affiliate Marketing, Writing, Blogging, Video Editing, Business Marketing, Business Plan Writing, Idea Mapping and a whole lot more. Yes, I still want to watch pointless videos about endless fails and other junk but the learning has been awesome and I am glad that I've taken the time to do the learning even tho I can not count it as an asset.
In summary if you are wanting to get into purchasing a house you are going to have to think differently and act differently!