Besides your credit score, your debt-to-income (DTI) ratio is a factor that can make or break your loan approval odds.
Besides your credit score, your debt-to-income (DTI) ratio is a factor that can make or break your loan approval odds. Lenders calculate your DTI ratio by dividing your total debt, including your new house payment, car loans, credit cards, student loans and other accounts that show up on your credit report by your before-tax income. The preferred standard is 43% or lower.