The One Number That Could Make or Break Your Mortgage Approval!

Let me introduce you to the Debt-to-Income Ratio, or DTI.
What Is DTI?
Your Debt-to-Income Ratio measures how much of your monthly income is going toward debt payments. That includes:
- Credit card payments
- Student loans
- Auto loans
- Other recurring debts
Why It Matters for Mortgage Approval
When you apply for a home loan, lenders don’t just want to see that you’re earning money—they want to know how much of that income is already spoken for.
Here’s how it works:
Example 1:
- Monthly income: $6,000
- Monthly debt: $2,400
- DTI = 40%
- Monthly income: $6,000
- Monthly debt: $1,000
- DTI = 17%
Even if your income looks solid, a high DTI can severely limit the size of the mortgage you’ll qualify for. In fact, most lenders won’t approve borrowers with a DTI over 43%.
How to Improve Your DTI
The good news? You’re not stuck with your current DTI. A few smart moves can make a big difference:
✅ Pay down credit card balances
✅ Hold off on big purchases (yes, even that shiny new car)
✅ Consider consolidating debts to reduce your monthly payments
Lowering your DTI helps you appear more financially secure—and opens the door to better loan terms and smoother approvals.
Your Debt-to-Income Ratio might not get as much attention as your income or credit score, but it plays a massive role in your homebuying journey. The better your DTI, the more confident lenders will be in approving your mortgage.
Have questions about your DTI or where you stand financially?
Just reach out and let’s chat! I’d love to help you figure out your best path to homeownership.
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