It can be disheartening to be unable to qualify for a mortgage. However, by taking the right steps you can take your financial future into your own hands, correct your credit issues, and get a mortgage.

Look Up Your Credit Information

The first step to correcting any credit issues is seeing why potential lenders may have felt you weren't a good fit. You can get your credit information free every year from the three major credit bureaus. On your report, you'll find a note of any negative marks.

Clean Up Your Payment History

Your payment history is one of the most important parts of your credit score when pursuing a mortgage. If your credit report reveals a negative payment history, it's one of the easiest items to correct on your credit report.

To fix your payment history, see if your payment history is being reported correctly. If it isn't, you can report the discrepancy o the credit bureau and have it corrected. If your history is being reported correctly, work to ensure to make all of your payments in a timely manner.

Your Student Loans Matter

Another major component of your ability to get a mortgage resides in your debt-to-income ratio. Your debt-to-income ratio is the number you get when you divide the amount of your monthly debt obligations by your gross monthly income. So, how do your student loans factor into this?

Many people are surprised that their student loans strongly affect their debt to income ratio. Even under an income-based repayment plan, many mortgage lenders consider the full monthly payment amount when calculating your debt-to-income ratio. The only way to fix this is to either make more or focus more of your finances toward paying off your student loans.

Credit Utilization

In order to secure a mortgage, your lender is going to want to see you aren't relying too heavily on your credit cards. To have a desirable credit utilization rate, your card's balance is going to have to be less than a third of the credit available on that card. It's usually desirable to have some sort of balance on your credit cards, you just want to keep the balance relatively low.

Talk To Your Lender

If you have any questions about how to repair your credit, talk to a mortgage lender like FCN Bank. They will be able to tell you what issues on your credit report are preventing you from securing your mortgage. Even if you can't be approved for a mortgage today, communicating with your lender will give you the right direction to go in and help establish a relationship with that lender.