EXPLAINING DTI:

WHAT DOES DTI MEAN AND HOW WILL IT AFFECT MY MORTGAGE?

In the world of home mortgages, DTI is a crucial factor that lenders consider when deciding whether to approve your application. This measure, often referred to as your debt to income ratio, simply refers to the proportion of your monthly income that goes towards paying off your debts, including things like student loans, credit card balances, and mortgage payments.

There are a variety of different loan programs out there, each with their own DTI requirements. Generally speaking, the higher your DTI ratio is, the more risk you pose to the lender and the less favorable your interest rate will be. However, it’s important to note that lenders take a number of other factors into consideration as well when determining your eligibility for a mortgage, including credit score, employment history, and overall financial stability.

PAY DOWN YOUR DEBT

If you’re looking to buy a home and are concerned about your DTI ratio, it’s important to work with a qualified mortgage professional who can help you find the right loan program for your unique situation. With some careful planning and financial discipline, it’s possible to manage your debt and improve your DTI, making you a more attractive applicant in the eyes of lenders. So if you’re ready to take the next step towards homeownership, be sure to start by addressing your debt-to-income ratio!

If you would like to sit down with me and review your unique situation I would love to help. Give me a call at 509-737-7161 to get an appointment scheduled.