Tag Archive for: DTI ratios

How Much Income Do You Need to Buy a House?

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When starting on your homebuying journey, most often homebuyers wonder about the cost, what they can afford, and how much income is needed to purchase a home. There are many different factors and calculations that we've broken down to help explain how much income is needed to buy a home. Read More

Debt: A Common Reason for Mortgage Denial

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There are several reasons why homebuyers may be denied when applying for a mortgage. Pre-existing debt can be one of these reasons. Debt is one of the more common reasons for loan denial in California and throughout the country. When homebuyers have a great deal of debt, it is detracted from their income during the mortgage qualification analysis conducted by the bank. In some cases, debt reduces the amount of income below the necessary amount needed to cover future monthly mortgage payments.Read More

Understanding Your Debt-To-Income (DTI) Ratio in Dallas

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Lenders use a debt-to-income (DTI) ratio to determine how much income a borrower needs to fund their purchase or qualify for financing. Most lenders in Dallas, Texas, recommend that borrowers stay within a 45% - 50% DTI limit.Read More