Debt-to-income ratio is one of the most important metrics lenders use when evaluating mortgage applications. While income determines borrowing capacity, existing debt determines how much of that income is already committed.
When it comes to getting approved for a mortgage, most people immediately think of their credit score. While it is definitely important, there is another number that can play an even bigger role in your approval, our debt-to-income ratio. Also known as DTI, this number gives lenders a clearer picture of your ability to manage monthly payments and overall debt.
When it comes to securing a mortgage for your dream home, there’s a crucial number that can make or break your application: your debt-to-income ratio (DTI).