Secrets Your Mortgage Broker Will Not Tell You

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FAQs That Can Help You Know More

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What are the factors that determine if someone can get a loan?

The basic and most important is what is called debt-to-income ratio (DTI). This is calculated by taking the total house payment, including interest, taxes, and insurance, adding all long-term debt payments, and then expressing that sum as a percentage of the gross monthly income. It basically is all your monthly debt payments divided by your gross monthly income. This is how lenders measure your ability to manage the payments you make. Normally the higher your DTI, the more likely you will run into trouble making monthly payments. 43% in most cases, is the highest ratio a borrower can have and still get a qualified mortgage. There are exceptions of course. But at least you now have an idea how this works.