Tag: Homebuying tips

What Counts as Debt for DTI? Discover the Keys to Mortgage Success

What counts as debt for DTI? Learn how lenders view your monthly obligations and how improving your DTI can boost your homebuying power.

what counts as debt for DTI chart breakdown

Your DTI includes monthly obligations like mortgages, loans, credit card minimums, and more. Understanding these can boost your buying power.

What Counts as Debt for DTI? Discover the Keys to Mortgage Success

Your debt-to-income ratio (DTI) plays a massive role in the homebuying journey. šŸ“‰ Lenders use it to measure your ability to manage monthly payments and repay borrowed money. But what counts as debt for DTI? Thatā€™s the million-dollar questionā€”and one you absolutely need to understand if youā€™re planning to purchase a home.

In simple terms, DTI compares your monthly debt obligations to your gross monthly income. The lower your DTI, the better your chances of mortgage approval and favorable interest rates. But knowing exactly what counts toward this figure can empower you to reduce unnecessary debt, strengthen your finances, and unlock more buying power.

Breaking Down DTI: What Lenders Actually Count as Debt

Based on the visual provided, your DTI includes several core monthly financial obligations:

Housing Costs

This includes your rent or mortgage payment, including principal, interest, taxes, insurance, and association dues (PITIA). These costs often make up the largest portion of your DTI.

Loans & Debts

Car loans, student loans, and any other existing mortgages fall under this category. Even if the debt is deferred or on forbearance, it may still be counted.

Credit Cards & Leases

Only minimum payments on your credit cards countā€”not your entire balance. Lease agreements, such as car or equipment leases, are also included in your DTI.

Court-Ordered Payments

Payments like alimony or child support are part of your financial obligations and are considered in your DTI calculations.

Other Obligations

This includes personal loans, net rental property losses, or any other consistent monthly payments that arenā€™t optional.

Knowing this list helps you make smarter choices about which debts to tackle first.

Why Your DTI Matters When Buying a Home

Mortgage lenders typically look for a DTI below 43%, though some programs may allow higher ratios with compensating factors. A lower DTI not only increases your chance of approval but may also help you secure a better rate, increasing your affordability and monthly savings.

How to Improve Your DTI

Pay down credit card balances. Avoid taking on new debt before applying. Refinance or consolidate loans. Increase your income with a side hustle or higher-paying job.

Need help reviewing your financial picture? šŸ“² Letā€™s connect to review your numbers and build a plan to help you become a confident and prepared homebuyer.

Internal Link Suggestions

Mortgage Payment Calculator

Pre-Approved for a Mortgage

First-Time Homebuyer Tips

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Fannie Mae DTI Guidelines

Consumer Financial Protection Bureau

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Protect Your Due Diligence Payment: Essential Tips for Homebuyers

Avoid costly mistakes in the homebuying process by securing your due diligence payment. Learn why wiring funds, working with trusted professionals, and avoiding mailed checks can safeguard your investment.


Protect your due diligence payment with these smart homebuying strategies. Always wire funds and work with a trusted lender and agent to avoid financial risks.

Why Protecting Your Due Diligence Payment Matters

Purchasing a home is one of the biggest financial decisions youā€™ll make, and safeguarding your funds during the process is crucial. A due diligence payment demonstrates your commitment to buying a property, but if mishandled, it can lead to unnecessary risks, delays, or even financial loss. By following a few simple steps, you can ensure your money reaches the seller securely.

Never Mail a Due Diligence Check

Mailing a due diligence check might seem convenient, but it comes with major risks. Checks can be stolen, lost in transit, or even intercepted by fraudsters. If this happens, you may face delays or, worse, financial loss without recourse. Instead of mailing your check, opt for safer alternatives.

Always Wire Your Payment

Wiring your due diligence payment is the safest way to ensure that your funds reach the seller securely. A wire transfer provides instant tracking and reduces the chances of misplacement or fraud. However, always verify wiring instructions directly with your real estate agent or attorney before sending funds to avoid wire fraud scams.

Work With a Trusted Lender & Agent

Navigating the homebuying process is much easier when you have experienced professionals by your side. A trusted lender and real estate agent will guide you through each step, ensuring your funds are handled properly and that you avoid costly mistakes. Choosing reputable professionals can provide peace of mind and protect your financial interests.

Final Thoughts

Your due diligence payment is an important step in securing your future home, and protecting it should be a top priority. By avoiding mailed checks, wiring your funds safely, and working with trusted professionals, you can ensure a smooth and secure homebuying experience. If you have questions or need guidance on the home financing process, reach out to a knowledgeable mortgage professional today.

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ā˜˜ļøšŸ” You Donā€™t Need the Luck of the Irish to Buy a Homeā€”Just the Right Mortgage Plan!

You donā€™t need the luck of the Irish to buy a homeā€”just the right mortgage plan! Explore the history of St. Patrickā€™s Day and how smart home financing beats relying on luck. ā˜˜ļøšŸ”


Luck canā€™t help you buy your dream home, but I can! Secure your best mortgage option this St. Patrickā€™s Day. šŸ€šŸ”ā€

The Story Behind St. Patrickā€™s Day

Every March 17th, the world turns green in celebration of St. Patrickā€™s Day, honoring the patron saint of Ireland. While itā€™s often associated with shamrocks, leprechauns, and pints of Guinness, the holiday has deep historical and religious roots.

St. Patrick was born in Britain in the late 4th century and was kidnapped by Irish raiders at the age of 16. After years of enslavement, he escaped, only to return to Ireland as a missionary, spreading Christianity and, according to legend, using the three-leaf clover to explain the Holy Trinity.

By the 17th century, St. Patrickā€™s Day became a religious feast day, eventually evolving into the global celebration of Irish culture we know today.

Luck vs. Strategy: Why Homebuyers Need More Than Four-Leaf Clovers

Many associate St. Patrickā€™s Day with good fortune, but when it comes to buying a home, luck isnā€™t the deciding factorā€”strategy is.

1. Get Preapproved First

Before searching for your dream home, securing mortgage preapproval gives you a clear understanding of what you can afford. Unlike a lucky charm, this practical step strengthens your offer in a competitive market.

2. Explore Loan Options

From FHA, VA, and conventional loans to first-time homebuyer programs, the right loan can make all the difference. An expert loan officer will help navigate your optionsā€”no pot of gold needed.

3. Lock in the Best Interest Rate

Interest rates fluctuate, and waiting for luck to lower them isnā€™t a strategy. Working with a mortgage professional helps you lock in a great rate and secure affordable payments.

4. Understand Closing Costs & Fees

No hidden leprechaun tricks hereā€”closing costs, insurance, and taxes are real. Knowing what to expect will keep your homebuying journey smooth.

Your Homebuying Journey: No Four-Leaf Clover Required!

Leprechauns may guard their gold, but Iā€™m here to help you secure the best loan options and get preapproved with ease.

šŸŒˆšŸ€ Ready to find your pot of gold (aka your dream home)? Letā€™s chat today!

šŸ“© Contact me for expert mortgage guidance.

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5 Tips for Preparing to Buy a šŸ 

It’s best to be prepared before purchasing a home, especially in today’s market! Contact me so I can help you come up with a plan, and get you on your way to owning a home! #thehelpfulLO #home #house #listreports #prepared #homeowner #happyhome #realestate #hometips #finances #investment #smartmoney #mortgage #loanofficer

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