48 Meriden Rd, Suite 1, Middlefield, CT 06455

How Does Your Income Determine What Mortgage You Qualify For?

Debt to Income Ratio

Your monthly debt and monthly income are two important factors in helping mortgage people determine how much of a mortgage you qualify for (Debt to Income also known as DTI).  What many people don’t understand is that the type of property you are buying and your credit score are important in the process – they really take a second seat to something called your Debt to Income Ratio.

For example – let’s say you have a few credit cards with high balances, a car loan, and student loan debt.  And your monthly income is not much more than your monthly debt – then you would most likely not get approved for a mortgage on your own. On the other hand, your chances of getting approved for a loan would become much higher if you had low credit card balances, a paid off car loan, a low monthly student loan payment, and made a high monthly salary!

What Underwriters Look For

Some people would be discouraged from applying for a mortgage because they know their credit score is low. They feel that it is a waste of time because they’re so sure that they won’t get approved. However, having lower debt compared to your monthly income (before taxes) can be just enough to get you an approval. This is due to your ability to afford a monthly mortgage payment!  So, your credit score is important – but not as important as your ability to repay a loan.

Give me a call today so we can talk about your loan options and I can give you an idea of what you can afford.



Ramazan Sinani
Mortgage Loan Originator
Northeast Financial
NMLS: 1590862 Company NMLS: 117273
Cell: 203-695-6858 Fax: 203-413-6240