Do Debt Ratios play a role when buying a home?

In general, a lender’s underwriter will attempt to verify two primary things in order to meet the bank’s criteria for offering you a loan: general creditworthiness and debt-to-income ratio.

As a consumer, you’re used to being the one with the power to judge the products and services you purchase and the companies that offer them. But when it comes to financing your new home or refinancing the one you already own, you hand that power over to the mortgage lenders and, more specifically, the underwriting department.

A mortgage loan underwriter is tasked with carefully analyzing every bit of information the loan officer asks you to provide as part of the loan application process as well as the collection of “trailing documents” that you send in later to substantiate the information you’ve already provided. In general, the underwriter will attempt to verify two primary things in order to meet the bank’s criteria for offering you a loan: general creditworthiness and debt-to-income ratio.

We work hard and strive to deliver great results with our clients’ credit and debt goals always in mind. That is what makes us your ONE stop shop for all your credit and debt needs. Call us at 844-FIX-URCR or visit us at 6416 Gateway E.

*Individual results may vary. Please call for more details and to discuss your own individual situation.

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