4. Pay your debts
If you have a car loan, try to pay it off before signing up for a mortgage. If you have credit card debt, pay as much as you can. Having outstanding debts, especially credit card debt, may prevent your mortgage from being approved.
Examine all other outstanding obligations, such as student loans. Any student loans will not have a negative impact on your credit report if you stay on track with your payments. Some loans, especially private loans, may, however, be harmful. Talk to the company with your student loans to determine what you can do to increase your mortgage loan opportunities.
