A lower credit score can really impact your mortgage rate. To get the best rate, you need the best credit score you can get. So, how do you know when your credit score is at it's best? By monitoring your credit score, you can see how it fluctuates and you'll be able to see when you're at your absolute best. And when you hit that point, that's when you want to apply for a mortgage. Waiting until your credit is at it's peak means you can hold it for 4 to 6 months, and then you have a better shot at locking in a great mortgage rate.

The percentage balance to limit is a very important factor in calculating your credit score. You can boost your credit score by raising your credit limit if you continue to make your monthly payments on time. Remember: if you request a credit limit, you will likly be hit with a credit check, which can lower your score. The impact of a soft inquiry like this is usually minor and temporary.

Any large purchases, you need to put those on hold and wait until after you buy your home. Credit bureaus report your monthly ending balance on a statement every month. Make this a key shift in your spending habits. Pay off your credit cards in full right before the statement comes out. For example, if your statement is on the 12th of every month, pay it off by the 9th or 10th of the month. That way when the bank generates the monthly statement they'll show a $0 balance. That's important because that's what they'll send to the credit bureaus.