How does your overall Debt impact your qualification for a mortgage

Lenders look at something called your debt-to-income ratio, or DTI, to help determine whether you qualify for a mortgage.

So even if your credit score is great and your job is stable, if your debt is too high, a lender could still view you as too much of a risk.

Your DTI is your recurring debt payments as a percentage of your income

Debits include regularly occurring items, including mortgage payments, rents, outstanding credit card balances, and other loans.

Generally speaking, lenders like to see a DTI under 36%, although it's possible to qualify with a higher ratio.

The calculation lenders actually do is a bit more complicated than what I’m saying here, so talk to a lender or look up more details online for more details.

Your DTI is the percentage of your monthly gross income that goes toward monthly debt payments, including housing costs, as well as car, student loan, credit card and other debt obligations. Lenders like to see a DTI under 36%, although it's possible to qualify with a higher ratio. The lower your DTI, the better your chances of qualifying for a mortgage and getting offered the lowest available rate.