Before taking on a mortgage, you want your debt-to-assets ratio to be as favorable as possible.
4. Pay Down Your Debts
If you have a car loan out, try to pay it down before applying for a mortgage. If you have credit card debt, pay down as much of it as you can. Having outstanding debts, especially credit card debt, can cause your mortgage not to get approved.
Take a look at other debts that you may have, such as student loans. Some student loans will not negatively affect your credit report as long as you maintain your repayment schedule. However, some loans, especially private ones, may be detrimental. Talk to the company that holds your student loans to find out what you can do to boost your chances of getting a mortgage.