Debt to Income Ratio on Home Loans

When an Arizona mortgage lender evaluates a prospective borrower's mortgage application, one of the main elements used to approve or decline each borrower is something called a "Debt to Income Ratio." What is Your Debt to Income Ratio?  The Debt to Income Ratio (or "DTI" for short) is a method used to determine how much debt a mortgage loan applicant has in comparison to their gross income.  Each different type of Arizona mortgage (Conventional, FHA, VA, USDA, Jumbo etc..) sets a maximum … [Read more...]