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How to Buy a House in 15 Steps: The Ultimate Guide

Redfin

Debt-to-income ratio (DTI) Another major factor that a lender will consider when approving your mortgage loan is your debt-to-income ratio (DTI). DTI is calculated by dividing total monthly debts by gross monthly income. The number is then multiplied by 100 to get the final percentage.

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131 Real Estate Terms & Definitions Your Clients Expect You to Know in 2023

The Close

Debt-to-income ratio (DTI). You can help your clients calculate their DTI by adding together all of their monthly payments and dividing the total by their gross monthly income. This is where clients with good credit, high down payments, and low debt-to-income ratios can negotiate for better rates.