What Debts Count When You Apply for a Mortgage?

Written for Louisiana Mortgage Handbook by Chasity Graff, Mortgage Broker/Owner of LA Lending, LLC.

Last reviewed: 2026-06-24

Quick Answer

Monthly debts that show on credit usually count when you apply for a mortgage. That can include car loans, student loans, credit cards, personal loans, installment loans, child support, alimony, and other recurring obligations.

The lender uses these debts to help calculate whether the new mortgage payment fits your qualifying picture.

Why Debts Matter

Debt matters because the lender is not just looking at whether you have income. They are looking at how much of that income is already committed to other payments.

This is part of the debt-to-income review.

Common Debts That May Count

Common debts include car notes, credit card minimum payments, student loans, personal loans, installment loans, mortgages, HELOCs, child support, alimony, and other required monthly obligations.

Some debts may need special handling depending on the loan program and lender guidelines.

What May Surprise Borrowers

A debt can matter even if the balance feels small. A new payment can change qualification if the file is tight.

Student loans can also matter even if the payment is low, deferred, income-based, or not currently being paid, depending on the loan program.

My Thought Process

I want to know about debts early because they can change the approval path.

If a file is tight, a new payment or an undercounted debt can be the difference between a comfortable approval and a problem.

Common Mistakes

Opening a new loan after preapproval.
Assuming a co-signed debt does not count.
Forgetting about child support or other obligations.
Assuming student loans do not matter because they are deferred.
Paying off a debt without checking how it affects assets and cash to close.

Bottom Line

Debts matter because they help determine whether the mortgage payment fits.

Before making changes to debts while shopping or under contract, check first so the approval does not get knocked off track.

Educational Note

Educational note: This page is meant to explain the mortgage process in plain English. It is not a loan approval, commitment to lend, rate quote, or legal/tax advice. Mortgage programs, pricing, payments, documentation requirements, and guidelines can change. Final approval depends on credit, income, assets, property approval, appraisal, title review, underwriting review, lender guidelines, and approved credit.