Reduce your debt. A lower debt-to-income ratio, which compares your minimum payment on all debt with your gross monthly income, may make the difference between qualifying for a loan or not, but it doesn’t directly impact your mortgage rate. Generally, lenders prefer a debt-to-income ratio of 36% or less, but most loans require a ratio of 43% or less. Some lenders and loan programs allow a higher debt-to-income ratio.

Source Google News