Hello,

I currently attend Millersville University in Lancaster, Pennsylvania. I'm graduating in May 2021 with a bachelor's degree in Accounting. I'm planning on purchasing a home around Millersville and house hacking by renting out the rooms to my college buddies once I graduate. I'm seeking advice on how I should structure my debt over the next several months to ensure I'm approved for the highest mortgage amount possible. 

I currently have just under $4,000 of unpaid principal remaining on my car loan. I've been blessed to receive a basketball scholarship my four years at Millersville, so I don't have any student loan debt. I'm taking out a Federal Direct Subsidized loan this semester in the amount of $2,750 with the intent of paying off principal on my car loan because the interest rate is significantly better. I'm expecting by the time I'm applying for a mortgage, I'll have a job offer at a public accounting firm with an annual salary of around $60,000. 

My uncertainty about my situation lies in whether or not I should prioritize paying off all my debt before applying for a mortgage. Would a lender prefer to see that I paid off all my debt quickly and have no other debt when requesting a mortgage, or would they prefer to see I have a sizable cash reserve to use for a down payment with a little debt remaining on my credit report?

Any advice on my situation would be greatly appreciated, and I look forward to being apart of the Bigger Pockets community!