Acquiring a mortgage with high levels of credit card debt is more challenging than attempting to get one with a clean credit report, but it is not impossible. Mortgages with very high down payments are much easier to acquire for people with tarnished credit or large outstanding debts. Applying for a mortgage loan with a co-signer that has an excellent credit rating can also improve access to mortgages no matter how much credit card debt you might have.
Inquire about mortgages for individuals with poor credit at your lending institution of choice. Most lenders will not offer mortgages with low interest rates and low down payments to people with poor credit or high existing debt loads relative to their income.
Negotiate with the lender about the mortgage. Provide proof of income. Demonstrate that you have a plan to repay your existing credit card debts without recourse to additional debt. If you provide documentation demonstrating your ability to live within your means and pay the mortgage, your chances of approval will increase. If you can show that you are already paying off your credit card balances, it may improve your chances of getting a better mortgage.
Consider contacting a subprime lender that may provide you a mortgage regardless of your credit status. These lenders usually charge far higher interest rates even if they require relatively low down payments.
Compare mortgage offerings from different lenders. The more information that you are able to provide prospective lenders with about your finances, the more willing that they will be to negotiate for a contract that is in your favour. Making mortgage payments on time is an excellent way to improve your credit score over the long term.