While avoiding debt is something that many strive to do, sometimes it's simply not possible. Whether you have medical bills from and accident or illness, were unemployed for a period of time, or simply have debt from student loans, sometimes it's necessary to borrow in order to make ends meet. While borrowing can be useful in many situations, it can hold you back later on down the road. If you are looking to buy a home while paying off other debts, you may find it challenging. Here are three things to consider about buying a home while in debt.

Your Debt-To-Income Ratio Is Important

The first thing that you should take a close look at while buying a home is your debt-to-income ratio. Your debt-to-income ratio is the ratio of your monthly debt payments to your monthly take-home income. If this ratio is more than 43 percent, it can be very difficult to obtain a mortgage. However, if your debt-to-income ratio is less than 43 percent, you will likely qualify for a mortgage loan even if your debt load is substantial. This is often the case with those who have large amounts of student debt but also have high incomes. 

Considering Restructuring Your Debt

If you feel that you are being swallowed by debt, restructuring can help. Not only can restructuring your debt make your monthly payment lower, but it can also improve your debt-to-income ratio and make you more attractive to lenders. There are a variety of ways to restructure your debt including negotiating for longer repayment terms for student loans, consolidating your credit card debt, or simply refinancing your current debts. Negotiating for lower interest rates or a different repayment schedule can make a huge difference when you are looking for a mortgage loan.

Shop Around For Lenders

While your debt may be a major drawback to finding a home loan, shopping around and looking at various lenders can help. In certain instances, some lenders may be willing to give you a home mortgage loan if you have a certain amount of cash on hand or meet other requirements. In fact, some lenders may lend to you even with a debt-to-income ratio of 50 percent. Shopping around and looking at various mortgage companies can make a difference.

If you are in debt, it can be difficult to obtain a home loan. The first thing that you should do is take a look at your debt-to-income ratio. If it is under 43 percent, you will likely qualify for a home loan. If your debt level is higher, restructuring this debt can make a huge difference. Shopping around and looking at various lenders may also prove fruitful if you are in a significant amount of debt. 

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