Two Year Mortgage Rule 

When housing prices were rising quickly, mortgage lenders got pretty relaxed about documentation of a borrower's financial history.  They often looked at only 12 months of mortgage payment history, for example.  Now they're experiencing a rise in foreclosures, and they're often looking at a potential borrower's mortgage payment history for a two year period.  They're also looking at credit card payment history and installment payment history.  So if you want to buy a home, the sooner you get your financial house in order, the sooner you'll be able to do so.