New Member
Posts: 4
Registered: ‎08-01-2007

What factors into DTI?

Hey everyone. I have really found the information on this board helpful. I am trying to get everything in place for a new home loan. Which debts are used when calculating your DTI? CCs Auto loans Mortgages Student Loans? What else? Thanks for everyone's help!!!
Frequent Contributor
Posts: 379
Registered: ‎08-22-2007

Re: What factors into DTI?

Anything that is on your credit report and what you state on your mortgage app. Basically all your bills, expenses. etc.
It is recommened to get a car loan after 30 days of moving in to a new home ( closed escrow ). Also all the big screen TV's and other toys need to wait untill you got the house.
After you move in-- it get's much easier cause you don't care much about you FICO untill you decide to buy another house!
good luck.
Valued Member
Posts: 29
Registered: ‎08-24-2007

Re: What factors into DTI?

[ Edited ]
They take monthly installment loan payments, and the minimum monthly payments on credit cards and other revolving loans and add them together and compare it to your gross monthly income (before taxes etc come out). Meals, utilities, etc do not count. Low 40% is the highest they like to see...low 30% and below is ideal. 50% is about the max any mortgage or auto lenders will consider.

Message Edited by urlosin on 09-12-2007 05:49 PM

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