Tag: debt-to-income ratio
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Do I Have to Pay Off My Student Loans Before Buying a Home?
This month, 150,000+ people received emails that say some of their student loan debt will be forgiven. The latest $1.2 billion worth of debt forgiveness is a ray of sunshine for many potential first-time homebuyers. It impacts a person’s access to mortgage loans, and therefore the ability to acquire property deeds. But what about the…
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All About DTI: How Much Debt Is Too Much If I Want to Buy a Home?
Receiving the deed to a home is a major milestone. Typically, it depends on an earlier milestone: the mortgage approval. Apply for a mortgage, and lenders will consider your debt-to-income ratio (DTI). Why the DTI? Essentially, the lender wants to know how much of your earnings you spend, using credit. A low DTI suggests that…