Whether applying for a purchase loan or refinancing your existing mortgage, there are dozens of different things that can impact your ability to qualify for a loan to varying degrees. Some of the most significant are: Credit Score – One of the “Big Three” pillars of qualifying for a loan. Higher scores make multiple loan …
Part of the mortgage qualification process includes what is called your debt to income ratio (DTI). This your gross monthly income divided by the lump sum total of your proposed housing payment and any other monthly obligations that show up on your credit report. This would include car payments, student loan payments (this links to …
There are two ratios that a lender will be interested in; 1) your housing ratio, also known as your “front end ratio,” and 2) your debt-to-income ratio, also known as your “back end ratio.” The housing ratio is your gross monthly income (your income before taxes are deducted) divided by your total housing payment. Your …
