After using a mortgage qualification calculator it looks like the payments on my credit cards and other loans are too large to qualify for the home loan. Is there something I can do to help qualify for the loan?

After running the mortgage qualification calculator you should be able to identify which of the payments in the calculator are not related to the monthly mortgage payment.  Look at these debts to see which ones may be the easiest to be reduced.  The easiest payment reduction process would be to payoff one of the debts, preferably the one with the largest monthly payment.  A borrower can also pay down debt.  Any installment loans such as an auto loan will not typically be included in the debt ratio for qualification purposes if it has 10 payments or left remaining on the loan.  A borrower can pay down an auto loan or installment loan to 10 payments or less so the debt would be excluded.  A new personal loan to consolidate other bills into one lower payment is also a viable option to reduce monthly payments as well as refinancing any existing debt into a lower rate to reduce the monthly payments.  A mortgage calculator allows the user to identify these debts and the monthly payments attached to these debts to investigate the best method to reduce the debt burden and move the loan request closer to a loan approval.

This entry was posted on Thursday, December 11th, 2008 at 6:58 am and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.