Some people might check their credit score and assume they're ready to buy a home. After all, there are plenty of mortgage loan options to make homeownership more accessible even with subprime credit. But credit scores aside, the amount of current debt one has can make it harder to qualify for a conventional or other type of mortgage loan.
Debt-to-income ratio is one of a many important factors a lender will review when approving an applicant for a home loan. Keep reading to learn how to optimize your debt-to-income ratio and avoid mortgage mistakes.
For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.
What Is Debt-to-income Ratio?
An applicant may think
…