Increasing Your Debt
Lenders will want to verify your total debt versus your income. They call this your “Total Debt Service” and will allow 40% of your income for debt, INCLUDING your new home, taxes and heating.
Avoid making any big purchases that could increase your debt load. It limits the disposable income you have available to afford a house.
Don’t be late on payments or make excessively large purchases. Your lender will want to see a track record of responsibility.
Don’t Lie to Your Banker
Seriously. If there are skeletons in your financial closet, the banker is going to find them anyway and you will be committing fraud if you lie on your application form. Banks will often forgive some past transgressions, providing you have taken the correct steps to remedy the issue(s) and are moving forward in a more fiscally responsible manner.