Applying for loan, list both incomes? Good DTI %?

[James82]

Hoping to start applying here shortly and I'm curious, one of the the things for the app is income. Do you list only YOUR income or if you're married, do you list household income?

Also, what is a good percentage for DTI? Is this household income or personal income? I seen a few posts about people being borderline on their DTI percentage and I'm curious what borderline is.

Thanks!

[SantaMar]

it depends.  whats your future plans?  if you plan on borrowing in the future take into consideration that the borrowing power might be compromised.  i always thought its best to spread things out.  assuming you have this as an option, put some things in your credit with your income and some things with your wifes name and wifes income....best way to maximize your goals.  if you want to refi your home or buy an investment property but your borrowing power is limited because of a car note...something to think about...

also with regards to a car i think they are a little more flexible then a mortgage because if you default on the car note then the bank will take your car back while your sleeping!   they always will hold the title until....

[James82]

Well, I currently had both of the cars in my name alone. Both cars originally financed for around $15k. I just paid one off which we'll be keeping and I'll be trading in the other that we are currently paying on. I'd like to put it in my wife's name but her income alone is only $35k and I'm sure that won't be enough....... Our mortgage is in both of our names.

I'd like to refinance our home now actually. We're currently at %6.25 and we're upside down pretty bad. We bought our house in 07 right before everything went bonkers.

We might possibly be in a situation to purchase a family member's house in 2 years.

I'm REALLY trying to get my wife out of the van she's in currently because it's been a hassle and has more things going wrong with it.. I plan on using the money I saved from paying off the other vehicle for additional payments on the new vehicle.

[HoldingOntoHope]

Your best bet is probably going to be to go in and work whatever deal you are able between trade in, down payment and new vehicle cost. Once you have it all down then make a loan application based on your wife's income only if that is your desire. If the dealership says that they need more income then you can join in on the loan or put it in your name. But don't volunteer that you have income or are willing to do this upfront. Let them work with her first and see what can be done.

Understand that any move you make as far as vehicles could have an effect on whether you can qualify financially for any mortgage refinance. Debt to income plays a large role in that. You may need to decide which is more important to you first.

[James82]

Is DTI more lenient for auto loans? I mean, it would make more sense for me to get a refinance setup first and then apply for an auto loan after..... my DTI won't change with the refinance like it will with the auto loan.