How To Pay Off Debt To Buy A House May 2026

Lenders primarily look at your —the percentage of your gross monthly income that goes toward paying debts. To qualify for most conventional loans, you generally want your total DTI (including your future mortgage) to be 36% to 43% or lower. Reducing your debt not only improves your chances of approval but can also secure you a better interest rate. Strategy 1: The Debt Snowball Method

Buying a home is a major milestone, but high debt-to-income ratios can often stand in the way of securing a mortgage. Why Debt Matters for Your Mortgage how to pay off debt to buy a house

Once a credit card is paid off, keep it open. The length of your credit history and your total available credit both boost your score. Lenders primarily look at your —the percentage of