The first thing you need to do is build good credit. That means don’t have a lot of credit cards just one or two and pay your bills on time. Don’t fall for the store gimmicks with the 15% off when you sign up. Mortgage lenders do NOT want you to have 15 credit cards. Yes department store cards are considered credit cards. So stick to the minimum.
#2. Pay your parking tickets on time. That will come up when you are being researched for a loan. If you have outstanding parking tickets or other DMV issues you will NOT get the loan.
The next thing is to save as much as you can and then do not go overboard. Look within your budget even though you would love to do more. If you can’t afford a house you might be able to afford a co-op or condo that will build equity. That might be a stepping stone for you. You might want a one family but that might not be feasible for your budget and an income property might be the way to go so what you want versus what you need is something you should figure out with a financial advisor.
In addition be realistic about what you can live with and what you really have to do. Remodeling is not only very expensive it is draining. It is never what the estimate or contract states. You will always want to do more and you have to figure in hidden and unexpected costs. So even though you hate the bathroom or kitchen as long as it is functional stick with it if remodeling does not fit into the budget for now. Use your own resources to make it feel more like home. Paint it yourself if you can’t stand the color. Wait a year or two to recover some financing before redoing the kitchen. Be creative with new towels, curtains, etc to camouflage what you don’t like. The space and location is more important than the look. Look at the bones of the house rather than the decor. You will be surprised how much you can do on your own. I learned to wallpaper all by myself in one of my apartments.
You can get a great deal on something ugly but something that has great bones. My first house was considered the “haunted house” on the block. It was empty for a while, the paint was peeling off on the inside, the garage was falling apart. No one wanted it, it was being sold by the court, etc. What I saw was a 40×100 lot in Flatbush. A completely detached house with a private driveway and a 3 bedroom with an attic which could be a 4th bedroom. My mom a”h told me I would be sorry if I bought it. I was never sorry and SHE was so proud of my house she told everyone they should be as smart as me.
Was it the perfect house? My dream house? Exactly what I wanted? No, of course not. But it was a great first house for my family and gave us room to grow. We lived there for ten years and it tripled in value. Which gave us the base we needed for our current house.