Saving for the down payment and closing costs are important parts of the home buying process, but getting approved for a loan is an entirely different ballgame. Having a good credit score will determine a lot of things for you as a home buyer. The thing is that a good credit score isn't something you work on overnight, or over a few months. It takes several years of focused effort to get your finances in order and have it reflect on your credit score positively.

1. Lower your credit card balances. - Credit card debts, depending on their amount and the circumstances around them may be considered bad debts. It's going to be very difficult to get approved for a loan if you have a lot of bad debts. It will be impossible to get approved for a loan if your debt to income ratio is more than the acceptable level. Of course if you look at it from a practical standpoint, it would be very hard for you to maintain your mortgage payments if you have a lot of debts you need to pay. You'll find it difficult to come up with enough money for the payments or cut off too much from your daily expenditures in order to make the payments, which is something really hard to sustain. Lowering your credit card balances and keeping them low by spending and paying responsibly will help raise your credit score.

Many people find that credit card debts are indications of a deep-seated issue with spending unwisely. Just resolving to change your spending habits is going to be insufficient. To undo habitual spending issues and their repercussions, credit counseling can help you out. It may take some time before you can totally bounce back and have a healthy enough level of balances on your credit cards but it's going to be well worth it.

2. Use your credit cards to keep a healthy level of activity on it. - Locking up your credit cards in a safe will not exactly be as helpful as you may think. Use your card but pay your debts off. Keep good debts instead of bad debts.

3. Apply for a loan within a short span of time. - Plan your "submission period" well. It will be detrimental to your goal to have a better credit score if you spend a long time applying for loans because lenders will request for your financial information. This may have a negative repercussion on your score.

4. Face the truth about your finances. - If you really want to have a good credit score, know what score you have now and face it with all the honesty and bravery you can muster. What areas need to be improved on? If you know what's wrong, you'll have a better chance of finding out what will make it right.

Do these and you'll be on your way to a better credit score which will make you eligible to buy a house someday. It may take you some time to see any improvement, but with a focused and intelligent effort, success won't be far off.