What is DTI?

Understanding Debt-to-Income Ratio (DTI) with Debbie Bennett from Cross Country Mortgage

Today, I'm excited to have Debbie Bennett from Cross Country Mortgage back with us. We're diving into an important topic for home buyers: What is DTI?

DTI stands for Debt-to-Income ratio. This is a key metric that lenders use to determine a borrower's ability to manage monthly payments and repay debts. Here's how Debbie explains it:

• Debt Calculation: First, we take the minimum monthly debt from your credit report.

• Estimated Monthly Payment: Next, we add the estimated monthly payment for the new property you’re looking to purchase.

• Income Assessment: Finally, we divide that total by your gross monthly income (before any taxes or deductions).

The result is your DTI ratio. Different loan programs have varying DTI requirements, so it's crucial to understand where you stand and what loans you might qualify for.

Why is DTI Important?

The DTI ratio helps lenders assess your financial health and ensure you can manage additional debt responsibly. A lower DTI ratio generally increases your chances of qualifying for a mortgage and might even get you better terms.

Need Help?

If you’re curious about your DTI ratio or wondering what type of loan you might qualify for, reach out to me. I can connect you with Debbie, who is incredibly patient and thorough in explaining the details. She will guide you comfortably through the process.

For any mortgage questions or real estate needs, the Raegan Thorp Real Estate Group and Cross Country Mortgage are here to help!

Let's talk today! 📞✨

Raegan Thorp
Raegan Thorp Real Estate Group

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