What is DTI and Why Does It Matter?
Before the housing market crash in 2008, you used to be able to get a loan by simply tell that bank what you earned. They took you at your word, and your application didn’t have to be backed up by any pay stubs or bank statements. So of course, everyone was getting a mortgage. Today, more regulations are in place. Buyers now have to qualify for their mortgages, and different lenders have different requirements. However most lenders are going to look at the applicant’s “debt to income ratio,” or DTI.
Watch the video below to learn more.