 Calculating dti (by Jason [PA]) Aug 16, 2017 7:47 PM
 Calculating dti (by Jason [PA]) Aug 16, 2017 7:51 PM
Calculating dti (by DJ [VA]) Aug 16, 2017 8:27 PM
Calculating dti (by DJ [VA]) Aug 16, 2017 8:33 PM
Calculating dti (by BRAD 20,000 [IN]) Aug 18, 2017 9:44 PM
Calculating dti (by Jason [PA]) Posted on: Aug 16, 2017 7:47 PM
Message:
I am a little rusty on this. How to lenders calculate my debt to income ratio? When they says debt, does that include expenses or just debt? Gross income or net? --152.208.xx.xxx |
Calculating dti (by Jason [PA]) Posted on: Aug 16, 2017 7:51 PM
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Also,do they go off tax returns gross received rents say from tax returns,or do they take assumptive total rents by taking all my rents and adding together (100% collection) --152.208.xx.xxx |
Calculating dti (by DJ [VA]) Posted on: Aug 16, 2017 8:27 PM
Message:
I recently explored this with a mortgage loan officer. As I recall: They use your gross income (from a paycheck job, going back 3 tax years) plus rental income (actual net income if it is new property, early in the year - if you have already filed taxes with that property included, then 70-75% of the rental income is used) to calculate your income.
They add together all your debts (personal and rental) including mortgages, R. E. tax, insurance, car loan, credit card - to calculate your debt.
The ratio should be 45% or less. --68.105.xxx.xxx |
Calculating dti (by DJ [VA]) Posted on: Aug 16, 2017 8:33 PM
Message:
Wait - now I'm not sure if tax/ins was considered debt. Sorry
I definitely found it interesting to learn that my income from 2015 ago still mattered (but it will be dropped from the equation Jan1) Money in the bank doesn't matter, so it could be a good move to pay off the car loan. And make sure there is no balance on credit cards at the time credit is checked, to improve the ratio. That really means no balance for a couple months to get through the whole loan process. --68.105.xxx.xxx |
Calculating dti (by BRAD 20,000 [IN]) Posted on: Aug 18, 2017 9:44 PM
Message:
Jason,
Side note if this helps:
When you pay off a debt your credit score will go DOWN before it comes back up over the next 90? daus.
Also clean off old or unused accounts.
MY CR contained 4 serious errors.
Fyi: I don't use banks so my CR is irrelevant. Learn how to use money without a bank. Much easier!!
BRAD --68.50.xx.xxx |
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