Secrets to Mortgages Despite Outstanding Credit Card Debt
Strategies to Improve Your Mortgage Eligibility
One effective strategy is to lower your DTI ratio, which compares your monthly debt payments to your gross monthly income. Lenders typically prefer a DTI ratio of 43% or lower, but some may accept higher ratios depending on other factors2. Paying down high-interest credit card balances can significantly improve your DTI ratio, making you a more attractive candidate for a mortgage.
Additionally, consider consolidating your credit card debt into a lower-interest loan. This can reduce your monthly payments and simplify your finances, potentially boosting your credit score and improving your mortgage eligibility. Many financial institutions offer personal loans specifically designed for debt consolidation, providing an opportunity to streamline your debt repayment process3.