Refinance mortgage and much more
A record of steady employment (that is, at least two years in a company or field) is a good way to show home loan lenders that you're a safe bet. After looking into your employment history, your home loan lender will then look at how your income compares to your debts after your new mortgage payment has been added in. Paying off as much debt as possible before applying for a home loan is a good idea. Why is this? Because in order to qualify for a home loan, the lender has to feel that you will have enough money to make your all of your debt payments comfortably. If a lender looks at your income and debts and sees too many debts for too little income, he or she may prefer to offer you a lower loan amount, perhaps with a higher interest rate.