The DTI is the Debt To Income ratio, is used by lenders to establish your ability to repay the loan. Remember, your credit worthiness is based on your credit score and both go hand to hand when you are trying to qualify for a mortgage.

Your income is confirmed with your paystubs and tax return, while your debt is confirmed through your credit report. The ideal DTI to qualify for a mortgage is 50% or less (there are exceptions but let’s keep it safe).

Examples of 2 loan applicants, they both make the same amount per month, but they handle their finances different. The first one possibly won’t qualify for a $1,200 mortgage while the second one will do for $1,500 easily (House priced at $250,000 – $280,000).

Make sure you have your debt under control and make your house buying goal a priority. Remember, sometimes –“ We buy things we don’t need with money we don’t have to impress people we don’t like” Dave Ramsey

Are you ready to buy your dream home? Give me a call, I will be happy to guide you.

Clarisa Moody

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