To your lender, the most important number in the world is the one that measures how much you earn versus how much you spend.
It’s called your debt-to-income ratio and it’s the basis for nearly every mortgage approval made today. Even more than your credit score, your debt-to-income often reflects your true ability to repay, which makes lenders want to say tell you “yes”.
In general, lenders want to see debt-to-income levels below forty-five percent, which means that for every hundred dollars you earn, they want no more than forty-five dollars committed to ongoing debts such as car loans, student loans, credit cards, and other debt types.
Sometimes, though, lenders limit buyers to a percentage somewhere in the thirties. It depends on the buyer and how much they’re borrowing, putting down, and their overall credit score makeup. Also, not everyone wants to borrow as much as a lender’s willing to approve.
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You’re not going to get that advertised mortgage rate because that advertised rates is generic – and you are not.