Your credit is extremely important for your financial situation. Think of it as a grade. When you're in school, you need good grades to qualify for a good college. When you're financially independent, you need a good credit score to qualify for low rates. The better your score, the more opportunities that are available to you. And though it takes years to create a good FICO score, it can take only a couple mistakes to tank.

Your credit score is your first impression with lenders. If you aren't looking stable, you won't qualify for a mortgage. Lenders must be sure that you'll be able to handle the financial burden that is a home loan. If your credit score is low, it shows that you haven't been able to handle credit in the past. This will hurt or even diminish your chances of qualifying.

Lending is all about risk. The more risk you present, the more you'll be charged. Those with credit scores above 700 get quoted rates in the fours and threes, and those with credit below 700 can be charged into the fives. Ten points could mean the difference between thousands of dollars paid in interest.

So before you fill out a loan application, check your credit report for errors. It may also be a good idea to spend a few months paying off old debts and doing your best to raise your score. Every little bit counts, so take the investment of a couple months before shopping for a home.