February 2024 - Smart Mortgage Centers

Loan Approval: A lower DTI ratio enhances your chances of loan approval. Lenders perceive a lower DTI as an indicator of a borrower's ability to take on additional debt without financial strain.
Interest Rates: Often, a lower DTI can qualify you for better interest rates. This can lead to significant savings over the life of your mortgage.
Borrowing Limit: Your DTI ratio influences the amount a lender is willing to loan you. A high DTI ratio might limit how much you can borrow, affecting the type of home you can afford.

Introduction: When you're in the market to buy a home, one of the crucial factors lenders consider is your debt-to-income (DTI) ratio. This ratio is a key determinant of your financial health and plays a significant role in the home...