The debt-to-income ratio is extremely important in calculating mortgage payments.

by | Mar 24, 2022 | Local Business | 0 comments

Romaineb

Romaineb

Whether your a first time home buyer, or looking for an upgrade, customer service is always my top priority. With over 15 years of sales and Marketing experience, my focus is to get my clients the the best possible price whether buying or selling. You can call or text anytime at 320-493-1400

Buyers in the housing market might think they are ready to buy a house; however, they may have forgotten one very important issue. The debt-to-income ratio is extremely important in calculating mortgage payments. Lately, what has been the biggest obstacle for the buyer getting approved for new home financing is having a large car/truck payment relative to their income. We all love our vehicles, but banks think of having a large dept relative to their income as being very fiscally irresponsible. Therefore, in order to purchase a house, one might have to buy out of their lease, put the lease into their spouse or friend’s name, or simply just sell their vehicle.

Consequently, for the first-time house buyers, they must consider the debt-to-income ratio before purchasing or leasing a new vehicle. Think ahead! Does that car payment make one’s debt-to-income ratio tip off balance and prevent them from buying a house in the future?  Because if it does, one may want to rethink that new vehicle purchase or purchase one of a lesser value!

Romaine Bray Realtor

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