The debt-to-income (DTI) ratio is not the only number that lenders use to decide on a candidate, but it is an important tool that can augment the buyer's credit score. Unfortunately, even those with impeccable credit may still miss out on their dream home if their debt levels are too high. Find out more about how to calculate the ratio and what it takes to make it a little more palatable to lenders.
The Golden Ratio
DTI is calculated by debts to income. These debts include the following:
- Credit card debt
- Car loans
- Student loans
- Mortgage payments
- Official home fees (e.g., condo, HOA,