OP before you do anything my suggestion would be to talk to a lender and see if you can get prequalified for a mortgage as your credit stands now. You could very well quality for a FHA loan with 3.5% down. Competing in the market is a different story but knowing your baseline would be very helpful so you can prioritize which debts to pay off, if any, to close on your home. Some lenders want cars paid off, others want to see credit cards gone.