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Hello: If you have a high credit debt ratio, does this decreases the amount of house you qualify for

  • November 27 2013 - US
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Answers (6)

Profile picture for Ed Rorrer
Yes!! Could ruin your changes of getting a loan period.
  • November 29 2013
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Profile picture for Ofe Polack
Debt to income ration is very important in your financial profile.  Your best bet is to talk with at least 2 mortgage brokers and seek their advise as to how to improve your credit.  Good luck! 
  • November 29 2013
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Yes it does. This is a very important financial aspect that lender look at when approving you. There are usually maximum limits for DTI ratio as well which is usually around 43-45%. If you already have a lot of debt, then lenders will realize that with your income, you cannot take on more debt. So then they will give you a smaller amount to qualify for.  The best thing for you to do is to speak with a lender like myself who would be glad to speak with you to help you get the loan that you need. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • November 27 2013
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Hi,

Your debt to income ratio is one of the most important factors in determining how much you will qualify for.  A higher ratio will mean you will qualify for less, as the ratio accounts for your current obligations plus the new housing obligation, all divided by your income.  To see where you stand, your best option is to talk with a lender.  If you're in California, please contact me and I'll be happy to discuss your scenario and help you formulate a plan to reach your home ownership goals.

Good luck!
  • November 27 2013
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For a conventional loan your debt to income ratio cannot exceed 43% (I believe), but do verify this with your lender. The more debt you have, the lower the monthly mortgage payment you will be able to qualify for. Again, best bet is to work with a lender who can look at all your financials, discuss your options, and help pre-approve you.
  • November 27 2013
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If you have a high debt to income ratio it does affect what you qualify for. You need to speak with your lender to see what those ratios are for the loan program that you want to use.
  • November 27 2013
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