Your Credit Matters
It’s very difficult to qualify for a mortgage with a credit score less than 620. But for the best interest rates on a conventional loan, you'll need a FICO credit score of 740 or above. Below that level, it becomes much more expensive to borrow.
For instance, a 740+ credit score may get you an interest rate of 4.25%. But a 650 score could cause that rate to easily jump to 5%.* 
On a $200,000 mortgage, that is the difference between monthly payments of $984 and $1,074. That is $90/month!
*The add-ons to the interest rate vary greatly depending upon the down payment, credit score, and credit history/charge-offs.
Improving your score:
Þ Faithfully pay all bills ON-TIME
Þ Do not open any new lines of credit (i.e. credit cards, interest free financing, new auto or student loans)
Þ Pay down any existing debt
Þ Do not close any existing lines of credit
Þ Seek Professional Help - Credit Repair
Timing: Good faith efforts to improve credit can take a couple months to a couple years depending upon the situation.
Þ Paying down high balances will significantly improve credit scores within 1-3 months.
Þ Establishing credit takes 6 months or more.
Þ A bankruptcy and any delinquencies/write-offs can take 7 years or more before it no longer impacts your credit.
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