Proper Approach to DTI for mortgage plan?

[C_DUBYA]

Hello all.

I am prepping for home buying and trying to get my DTI lower since I know its high.

Current situation:

Monthly gross income: 6300 salary +1500 business

Monthly debts:

Current rent: $2200 (Not sure if I include current or what the potential goal would be)

Truck: $475

Car: $365

Credit cards: $100 a month

Loan: $200

Loan: $460

Child Support: $900

Now the truth is I am married so my wifes incom assist with the above, but we are trying to get a house with just me on it therefore I can only count my income.  The question is which things should I focus on removing?  The two loans?  That would free up 660 a month.  

Any other areas you can see and suggest?  Scores are 675-674-665

Thanks

[NC_Mtg_Loaner]

What about the car or truck?  

Can you sell one of those or are either of them within a year of being paid off?

How old is the child receiving child support?

Paying off those installment loans would be helpful as well, yes.

I am also curious when you say your salary is $6300 + 1500 business---what does that mean? did you want to type bonus?  have you worked for this co. for at least 2 years so bonus income can be qualified easier? or do  you own a business that provides you $1500 worth of income in addition to the $6300 salary?

[C_DUBYA]

I have two children 10 and 13.  So unfortunately that is not going away anytime soon.

Truck is a lease and up January 2021.

Car is years away as well with like 10k left owed.

The 2 loans are secondary and would be easier to get rid of.  Thats why I was thinking them.  Would the 660 a month be enough to improve the DTI?  Or is adding my wife the best way to avoid it?

The 6300+1500 is your last point.  I work at a salaried position and on the side I have a small web design business and costume thing.  That brings in a consistent 1500 a month addition to my main job.  Because I am a sole propieter that income is just mine and I claim it on my own taxes.  I hope that makes sense!

Thanks @NC_Mtg_Loaner 

[NC_Mtg_Loaner]

It's recommended that you sit down or have a Loan officer work to pre-approve you as you have a couple "moving parts" that require some more details in order to solidify where you stand.

Income stability--have you been doing both for 2 years?   Do you have a separate bank account for the web design business?  Or do you just deposit checks when they roll in?   I ask because if you don't have a separate account from where your down payment funds will come from when you purchase your home the paper trail and proof of deposits can be a bit intrusive---to the point that you may want to consider opening an account just for the business funds.

Truck lease payment with <10 months remaining can be excluded as long as you are not obligated to purchase afterwards or have any other contingent liability amount associated with it.  (copy of lease required) 

[BSBRose21]

@NC_Mtg_Loaner  just curious if excluding a lease payment with less than 10 months left is normal for all mortgages debt to income ratios.  I don't want to overstep on someone's post so won't give too many details.

We have a really high DTI 56%  backend because of a few things (my name is on Father's house and most of husband's self employment doesn't count). I have a lease that ends January 2021 too.

[Anonymous]

Hello-

If I were you I would reach out to a mortgage lender to get a better understanding of what you should/shouldn't pay off.  From my calculation, your DTI seems satisfactory if you were to pay off the two loans. Only items listed on your credit report are factored in your DTI, plus your child support as it is a monthly liability.  Speaking directly with a lender will give you better insight as to what you should do to get a pre-approval.