Hi,
My husband and I planned to buy a new home this past summer but the loan was contingent on us selling our current home, that didn't happen and our house is still on the market, we are hoping to be able to sell and buy this coming spring/summer with any luck. We wanted to buy a new truck and travel trailer this summer but were waiting for the new house so it wouldn't mess with our future loan, since we didn't sell we went ahead and bought both last week and were able to get great deals, b/c of our improved credit scores we were able to lower our interest rates and monthly payments by about $50 each so we are saving around $100 a month. My question is when we were pre approved in June we had a 41% dti and credit scores from 670-720 .. Now my husband is in the 765-785 range and mine are 750's and our DTI should be slightly lower with the new payments but we will have two new loans on our credit which I'm sure will lower our scores somewhat. With all the changes do you think we will still easily qualify for a loan? and do lenders only look at monthly payments or also total amount owed? Our total debt went up but monthly payments were lowered.
Oh and a few other details, we carry no credit card debt, we both have a few cards each but only a charge few small purchases that we always pay in full every month and we also own a rental property that has a monthly payment of about $1000 a month but we receive $1250 in rent that is reported to our taxes ($50 more then when we were pre-approved in June, we raised rent since then)
Thanks for any help! 
Starting Score: 480-550 in 2005
@ShanetheMortgageMan wrote:It's the monthly payments that affect your DTI, not the balance owed on the debt.
The increase in the amount you get in rental income won't be factored into your debt ratio until your 2010 taxes are filed/used for underwriting, but since compared to last time your credit scores are going to be higher, and your debt to income ratio will be lower, you should be fine.
Great! That's what I was hoping, but I wanted to make sure.. Thanks Shane!