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Debt to Income Ratio Script

If you’re in the market to buy a home, this is one of the most important things when it comes to getting pre-approved for a mortgage.

It’s the debt-to-income ratio - here’s how it works.

Lenders calculate this by dividing your total monthly debt payments by your gross monthly income.

So if you have a $400 car payment, a $400 student loan payment, and $1200 rent, and you make $4,500 per month, your DTI is 44%.

That’s $2000 divided by $4500.

If your income grows or your debt obligations decrease, the DTI shrinks. This is preferable to lenders.

Generally, a DTI ratio of 43% is often considered the maximum for qualifying for a mortgage.

If you’re not at that 43% or lower, don’t worry, drop me a follow for tips and tricks on the home buying process.

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