What You Need To Know About Buying or Refinancing a Home If I Have a Lot of Debt
Published on 04/17/2025
What do I need to do to buy or refinance a big purchase like a home if I’m carrying a lot of debt?
And how can debt relief help me get there?
Great question—and it’s one of the smartest reasons to look into debt relief. Whether you're trying to buy your first home, refinance your current mortgage, or get approved for a major loan, two things matter most:
1. Your Debt-to-Income Ratio (DTI)
This is how lenders compare how much you earn to how much you owe each month.
– Most mortgage lenders want your DTI under 43%
– If you're carrying high credit card debt, your DTI goes up—even if you pay on time
– High DTI = higher risk = worse loan terms or denial
Debt relief lowers your DTI by reducing your monthly payments and total debt
2. Your Credit Utilization
This is how much of your available credit you're using.
– Over 30% usage starts to hurt your credit score
– Over 50% tells lenders you’re financially stretched
– 90%+ looks like a risk, even with on-time payments
Debt relief helps lower utilization by negotiating down your balances and stopping the growth of interest
How Debt Relief Helps You Prepare for a Home Purchase or Refinance
– Lower monthly payments free up your cash flow
– Settled accounts reduce total balances and improve your financial picture
– Score recovery usually starts 12–18 months into the plan
– Your DTI improves, which is key for any mortgage or refinance
– You’ll be debt-free in 2–4 years, rather than carrying balances for 20+
Quick Tip: The Banks Don’t Count Intentions—Only Numbers
Even if you’ve never missed a payment, high balances and rising interest can block you from getting approved. A debt relief plan changes the numbers that matter.
You go from: Maxed out & stuck to structured, settled, and building forward
The Bottom Line:
If you want to qualify for a better financial future—you need to build the right foundation first.
Debt relief helps clear the path, improve your key metrics, and get lenders to say yes.
We’ll help you make this your most powerful step forward.
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