Buying a home for the first time is a complex process, and no part of it is more stressful than applying for a home loan. While a home loan approval may seem arbitrary, it actually depends on a number of concrete factors, all of which an applicant has some degree of control over. Read on below for more information about the things you can do right now in order to increase your chances of a successful home loan application in the future.

Pay Off Debt 

A mortgage represents the greatest amount of debt you are likely to ever take on. Because of this, lenders will look to see that you do not have a huge amount of outstanding debt. Plus, paying off as much debt as you can (and as quickly as possible) not only grows your net worth but also increases your credit score. All in all, less debt means better financial health, which is a key component of any home loan application. It is not uncommon for many first-time homebuyers to spend up to a year or two working to eliminate all previous debt before applying for a home loan.

Compare Lenders

Not every lender processes a home loan application in exactly the same way. As a first-time homebuyer, some lenders may look at your application as unnecessarily risky, while others will be more than happy to work with you despite your lack of mortgage history. Likewise, certain lenders will weigh particular factors of your application differently than others. If you don't find what you're looking for with one lender, don't be afraid to shop around. The key to getting a home loan approval is sometimes just a matter of finding a compatible lender.

Apply with a Co-signer

Co-signing on a mortgage is a major financial responsibility. If the homeowner is unable to make monthly payments for whatever reason, the co-signer is legally obligated to take over payments. Yet this guarantee is exactly why having a co-signer on your mortgage can boost your chances of approval in a major way, especially if you are a first-time homebuyer. In the eyes of a lender, it decreases the amount of risk they take on. If you have a parent, sibling, or someone else who is in a financial position to co-sign on your mortgage, it may be just what you need in order to get the home of your dreams.