Getting ready to shop for the home of your dreams? If so, you'll need to make sure you have a high credit score in order to get approved first. Most lenders consider a good score anything above 700, according to Experian. From there, a lender will look closely at your credit history to ensure you're a worthy candidate. Once everything is verified and the loan amount is determined, the terms are calculated. Here are some steps to take to make sure your credit score is in good shape and a mortgage rates service company gives you an affordable loan. 

Stop Making Minimum Loan Payments

Have a lot of credit card debt but can only afford to make minimum monthly payments? If so, you may not be ready just yet for a home mortgage. Now is the time to pay down revolving credit accounts. If you can't pay the entire balance off, try to whittle down a good chunk of it. If you're struggling to get your credit card balances under control, try consolidating multiple loans and bundling them into one payment. This can save on interest and late fees and raise your FICO Score.

Pay Off Anything Late or in Collection

If you have medical bills or small credit cards that have been turned over to a collection agency, now is the time to pay them off. Because most mortgage lenders look at individual accounts selectively when underwriting, it's important to show you've made some stride in paying off debt. If you have late fees accumulating on certain utility bills or auto loans, start paying them on time. The number of existing loans, late payments, and length of loans are examined closely before the bank makes a final loan decision. 

Don't Accumulate New Debt

It may be tempting to get a new credit card at your favorite clothing or big box store, but now is not the time. Your lender will be looking at new debts you're taking on and take those into consideration with final approval. You could be considered a risk if you're taking on new debt, so try to avoid it all costs. An alternative would be to create and build a savings account just for extra items like going out to eat or buying new clothes. 

Run Your Score Prior to Applying

Walking into the bank and asking for a home mortgage loan is a serious life choice. Because lenders will look closely at your credit history, be sure to run your credit report and credit score before applying for a loan. You may find discrepancies that need to be addressed through the credit bureaus. Once everything is in order and your credit score is in a reasonable range, then you can present your inquiry to your lender. 

Having things in place prior to applying will set you up for a good outcome. Mortgage rates fluctuate, so be sure to apply at the right time to lock in a good interest rate. The result will be affordable monthly payments and the home you've always wanted!