Thinking about buying a home? Here’s what debt consolidation could do to your mortgage chances

Debt consolidation before applying for a mortgage can help reduce your debt-to-income (DTI) ratio and lower monthly payments, potentially improving mortgage approval chances. However, it may temporarily lower credit scores due to hard inquiries and reduced credit age. Evaluate loan terms carefully, comparing interest rates and repayment periods. Calculate your DTI, get rate quotes, and consult a mortgage specialist to decide if consolidation benefits your mortgage application.