Don’t DIY On Your DTI

Written by Posted On Tuesday, 22 July 2014 12:38

Think you understand your DTI (debt-to-income) ratio and what you need to qualify for a mortgage loan? Think again. The process of applying and qualifying for a mortgage is more complicated than you’d expect.

Here’s a common homebuyer mistake – Make sure it's not yours.

After leasing your car, or shopping for it, the dealer ran your credit – Wow a 725 FICO! 3 months later you're going shopping for a home.

You call in on an Internet ad for a house that looks great and the real estate professional asks, "Are you approved for a loan?" With an air of confidence and cool you reply, “My FICO is 725.” Then of course, they set an appointment to show you the home you inquired about.

You loved the house, rushed home on Sunday afternoon find out about the loan. Monday morning you called to a loan professional. However, they told you a lower FICO score, and then started to ask about your debt to income ratio. The world starts caving in, applying for a home mortgage is a lot different then applying for a car!

Most prospective buyers don’t realize all things that can affect  your mortgage - that car loan you just got really affected the amount you could loan.

If your goal is to buy a house, then make that your largest purchase. Also, make sure not to make any large purchases at least a month before you get your loan, then do not place any big charges on your credit card until you close your home purchase.

For further information, and your personal buyer consultation, feel free to contact me anytime at This email address is being protected from spambots. You need JavaScript enabled to view it..

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