DTI and What it Means for You

The home-buying process is littered with jargon and lingo that can be difficult to decipher. As the top rated mortgage broker/lender in California has to offer, we here at CalSun Mortgage want to make this process as easy as possible. With this in mind, here is a breakdown of DTI.

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What is DTI?

DTI stands for debt-to-income ratio. It is a financial lending term describing the relationship between your verified income and total debt payments, as listed on your credit This one of the factors to determine your eligibility for financing. relates to mortgage affordability. You may have heard this mortgage qualification metric referred to as "front end ratios" or "back end ratios," but DTI is the formal name. DTIs are vary from 36% to 55% , depending on the loan program..

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Typically, you will want your DTI ratio to be at 36% or less. This is the general range that will allow you to receive a loan from the best mortgage lenders Los Angeles is home to.

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Why is DTI Important?

Your DTI ratio indicates that you have a good balance between your income and debt, suggesting that you are more likely to be able to manage your mortgage payments. This ratio is usually scrutinized as much as, if not more than, your credit score. You do need to be aware that your DTI must not exceed the qualifying limit set by the mortgage lender. If it does, you may find yourself having difficulty getting a mortgage.

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Choose CalSun Mortgage

If you live in Los Angeles or are moving to Los Angeles and are in need of a loan, then look no further than CalSun Mortgage. We have been in the real estate and lending industry for over three decades and specialize in a range of loans from jumbo and conforming to reverse mortgages. With no upfront application fees or deposits, our competitive rates are all you need!

To move forward with your home-buying journey, and call CalSun Mortgage for a loan. To learn more about how we can help your real estate search, contact us today!

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