The debt-to-income ratio (DTI) is one of the most important elements in obtaining a mortgage. It tells lenders how much income a borrower can afford to spend on monthly debt payments, including housing expenses, car loans, credit card bills, and more. If the DTI is too high, your mortgage application may be rejected or the lender may not offer you the best possible interest rate. Read More
Debt to income ratio (DTI) is a financial tool that helps lenders assess your ability to make payments on a new loan. It helps them determine whether you’re a risky borrower who might not be able to make timely payments. The higher your DTI, the more likely you are to face a higher interest rate, or to be declined for a loan. When you know your DTI, you can make sure you’re prepared to handle any challenges that may arise. You’ll also have a good idea of whether it’s a good idea to take on new debt or to refinance an existing loan. Read More
If you’re thinking of buying a home, getting a pre approval letter is a good idea. It puts you ahead of the game and shows sellers that you’re serious about the process. While the preapproval letter isn’t the only thing that can put you on the fast track to closing on a house, it’s a great way to impress a seller. Read More
Buying your first home can be a daunting task. It’s a big financial decision, and there are lots of small decisions to make. There are also lots of resources available to help first time home buyers along the way. You’ll need to do your homework, though, as there are plenty of programs out there to suit your needs. Read More
The debt-to-income ratio is a very important factor to consider when you apply for a mortgage. Lenders want to be sure that you have the capacity to pay off a loan before they agree to offer you a loan. A higher DTI can increase your risk of defaulting, which is a risk lenders do not want to take. By paying off any existing debts, you can reduce your DTI. Read More
