4 Credit Score Tips for Aspiring Home Buyers

A house is likely to be the most expensive purchase you make, so it's a stellar idea to do everything possible to reduce the cost. Since your mortgage rate has to do in large part with your credit score, focusing on it is a great place to start if you're thinking about buying a home.

And lest you think that your credit score is "good enough," have you looked at mortgage rates lately!? According to Freddie Mac, as of this writing, the average rate on a 30-year fixed-rate mortgage loan is 7.19%. Since that's the average, it stands to reason that lower rates are out there -- and if you've got a great credit score, you stand a better chance at them. So here are a few tips to get your credit score in good (or better) shape before you start house hunting.

1. Recommit to making on-time payments

Okay, so this tip is an excellent one for everyone, not just those of us who are planning to buy a house sooner rather than later. Your payment history makes up a whopping 35% of your FICO® Score, and ideally, you have control over when you make payments to your creditors. So right now, make a solid commitment to making on-time payments every single month.

If you struggle with keeping your bills on a schedule, try my admittedly old-school technique. Buy a fun wall calendar, hang it where you can see it, and write all your bill due dates on it. Check them off as you pay them. Voila -- over time, you will become the owner of a stronger credit score that tells lenders you're great at making on-time payments. You could also try autopaying bills, as this takes the risk of forgetting out of the equation.

2. Check your credit report -- before a lender does

As part of you qualifying for and obtaining a mortgage loan, a mortgage lender is going to get very up close and personal with your finances, including your credit report. Since knowledge is power, why don't you beat that lender to the punch?

You can get your credit report for free every week until the end of the year, so order your copies and see what's up. If you find errors (like accounts that were never yours), you can have them removed. If you see black marks that should've fallen off your report by now, same deal. These little fixes can improve your credit score.

3. Pay down debt, if possible

I know, I know -- you're about to take on a mortgage loan, so you think a little credit card debt is the least of your problems. However, cutting down your existing debt will improve your credit score, and again, you want that to be in the best shape possible ahead of applying with a mortgage lender. Plus, having fewer (or smaller) bills to cope with can really help when you're making a new homeowner budget and learning to live with your new financial reality.

If you can take on a side hustle, it might be a good move ahead of buying a home. And it might change your life in another way. When I originally started freelancing over a year ago, it was for two reasons: to pay down debt and save money for a home. Now, I'm a full-time freelancer and I love it.

4. Avoid changes to your finances once you've applied

Finally, try to keep things just as they already are with your finances if you're already in the buying process and waiting for a loan to close. This means no applying for new credit cards, no financing a bunch of furniture to fill your new home, and ideally, no changing jobs. You don't want to do anything that will change your existing debt-to-income ratio or give your lender any reason to be nervous about you as a borrower. If you want new furniture for your new digs (I get it; I'm hoping there's a cozy new wingback chair in my future), wait until your mortgage has closed officially.

Buying a home is a stressful experience, for many reasons -- and doubly so in this difficult market. I'll be joining the fray myself next year, and I'm already feeling anxious about it. But one thing I feel good about is my credit score. Do yourself a favor and remove credit score worries from your home-buying experience by following the above tips.