DTI Ratio Secrets: How to Qualify for Mortgage Loans Faster
When it comes to buying a home, one of the first things lenders check is your mortgage loan DTI ratio . This number shows how much of your income goes toward paying debts compared to how much you bring in each month. The lower your ratio, the easier it is to prove that you can handle a new mortgage. Think of it as a balancing act. If your debts take up most of your paycheck, a lender may hesitate to approve you. But if your income comfortably covers your bills with room left for savings, you are in a stronger position. Why Lenders Focus on DTI Lenders want confidence that you can manage regular payments without falling behind. And your DTI ratio is their quick way of measuring that. It gives them a clear picture of your financial health beyond just your credit score. So, if you are aiming to qualify faster, improving your DTI is one of the smartest moves you can make. The Two Types of DTI You Need to Know It’s not just one number. There are actually two sides to DTI: Front-end ra...