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How does a lender calculate debt to income ratios?

Boise Idaho Real Estate
How does a lender qualify you for a home loan?  This is a video that I created to help you better understand how a lender might go about qualifying your for a mortgage as well as calculating your debt to income ratios. Let me be clear, I strongly recommend that you discuss your specific situation with a lender. If you don’t have a specific lender that you want to discuss this information with, click here to email me or you can call me at (208)284-0829 and I’ll give you a few lenders that I recommend.

The information in this video and blog is solely to help you understand how your Boise lender calculates your debt to income to figure out what you are able to qualify for. My hope is that you will be able to use this information to your advantage when you decide to pursue purchasing a home in Boise. Not enough purchasing power?  There are two ways to qualify for a more expensive home. You can either establish more monthly income or reduce your monthly debts. For most of us, it is much easier to reduce our monthly debt then it is to increase our monthly income.

Ratio’s used by the lender can vary based on your specific situation, loan program and debt risk so again, be sure to check with a lender.  A couple of other common debts might include Medical bills, loans that you may have co-signed on, child support, alimony and any other revolving debt. Also, when calculating your debts, be sure to use the minimum monthly payments on said debts such as credit cards. You might pay $150 a month on your credit card but for qualifying purposes, you should use the minimum monthly payment on that credit card.

I hope that you enjoyed this video and I would appreciate any feedback.

If you have any questions regarding qualifying for a Boise home loan or anything real estate related, feel free to contact me at any time!

Chase Craig

Boise MLS Search
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