If you're buying a home, your credit score will be a big factor, and the amount of debt that you have. Before you submit an offer on that dream home, consider the types of debts that you have and your income.

There are secured debts and unsecured debts. When you take out an auto loan, the bank can repossess the vehicle if you fail to pay the loan. This is called "secured" debt because the loan is secured by a vehicle, which the bank can take back to recoup its costs if you fail to keep up with the payments.

Unsecured debts, such as student loans, are not backed by anything, and cannot be taken back. Here are key types of consumer loans, which affect your ability to get a mortgage differently.

Debts and Securing a Home Loan

Student loans and credit cards are unsecured debts that can help boost your credit score. Since student loans can take decades to pay back, they can help raise your FICO score, especially because you're paying them over a long period of time.

Be careful, if you have a large student loan, it can affect your debt-to-income ratio, and your ability to qualify for a home loan. Same with credit card debt.

Auto loans are secured debts; they can be good for credit because they diversify the type of debt that you have, and they show lenders that you've been approved for a loan that was more complicated than a credit card.

If you already have a mortgage and you are applying for a second one, the new lender will want to be sure that you can afford both mortgages, so they will be concerned with your debt-to-income ratio.

If want to invest in a rental property, know that most lenders will not count rental income until you've been renting a home for two years. So, you must have enough income to qualify for a new mortgage.

If you're buying a new home, contact a real estate attorney for assistance!