Preparing to get a mortgage

Before applying for a mortgage, check your credit report for errors and ensure a good credit score to avoid denial or co-signing requirements. Lenders assess your income, expenses, debts, and credit to calculate your gross debt service (GDS) ratio, which should not exceed 39%, and total debt service (TDS) ratio, which should stay below 44%. Passing a stress test at a higher qualifying interest rate is mandatory for federally regulated lenders.