How To Calculate Debt To Income Ratio (DTI) For First Time Home Buyers

When first buying a home, one of the main things ALL mortgage lenders look out for is if you have a good debt to income ratio. But all this DTI talk can make people confused and complicate the process, well here's a simple breakdown of how to calculate debt to income ratio and what it means...

#realestate #realtor #debttoincomeratio #dti #mortgage #lender #mortgageapproval

Home Buyer Tools:

Work with Nicole in Arkansas:

Other stuff that's cool:
(As an Amazon Associate I earn from qualifying purchases)

Social Media Links:

Chapters:
00:00 - Intro
00:47 - How to calculate debt to income ratio?
01:03 - Why is it important?
01:27 - What ratio do lenders want?
01:50 - The breakdown
02:00 - What's included as debt?
06:39 - What's included as an income source?
08:09 - Example 1
13:15 - Example 2
18:04 - How to use an online mortgage calculator?
21:58 - Outro

— DISCLAIMER —
Nicole Nark is a licensed Realtor and the Principal Broker (PB00083374) of HomeWay Realty. HomeWay Realty is not a lender, does not issue loan qualifications, and does not extend credit of any kind. The topics discussed, and ideas presented are Nicole Nark's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

[mariaelizabethhortelano]

My daughter usually do not join with me watch videos, however this time she did. Thank you Nicole.

[Sisuri]

This is a great video. I wish it's a law that lenders explain DTI and mortgage to first time home buyers. My partner and I knew we wanted to purchase a small apartment on the lower end of price in our area. We don't care for fancy zip codes or new luxury builds, which we could afford. Our lender tried to convince us to get something nicer or bigger since our DTI was very low. My question is, how come taxes are not taken out from wages and salaries when calculating DTI?

[joshuaredic]

I usually don’t comment on videos but you are literally the best! Thank you so much

[parashshrestha]

Your explanation of minute details and your handwriting are both amazing. Thanks

[Vegoonery]

This was great, thank you! Very educational and easy to understand.

[taylorscott]

If I would have told high school me that I just calculated not only my dti but my fiances as well, I would've laughed in my face! This video made it so easy to learn and follow along and I actually feel good about it! Thats saying a lot coming from a girl whose senior quote was about hating math lol! Thank you for taking the time to create this video!

[kelvinjefferson]

Excellent information. Just easy and simple breakdown. Thank you so much😊💯

[phenglee]

Well done on single to Dual salary. Keep these up. I like the pillow example at the end.

[VIVIDESTINYOFFICIEL-vfvq]

I'm in the process of being pre-approved for a loan and I was wondering how to figure how much I should ask on my application. This video is a life saver. Thanks so much! I've learned a lot.

[janismichelebenoit]

Grateful to have found your videos, the information you've given has enabled me to move forward with a much clearer understanding of the nuances involved in the process of buying a home. Thank you Nicole, you made my day !!!

[Fold-pc]

This is exactly how I thought it worked but wanted detailed confirmation. Thanks so much for this well done video.

[OveranalyzingEverything]

Why in the world do they use gross income. It means nothing if you are taxed differently depending on the area and your take home could be vastly different.

[alizahblanchard]

I wish you were in Tennessee. You have a heart of a teacher. I enjoyed this video. Very informative.

[dreac]

Great content with examples and straight to the point!! Excellent!

[darealist]

This was so helpful. I'm glad I found your channel

[JessicaTothASL]

question! Is it better to put money into savings for a bigger down payment OR is it better to try to pay down debt?

[JustBeYouTy]

This is the best explanation on the internet

[eloadakah]

Thanks again Nicole!! This is what I need right at this moment!

[Claribel]

This information is Gold. Thank you do very much for taking the time to share and explain all this so well in a simple way taking also that Zillow example. Thanks again. God bless you 🙏

[AfifAllahmaFarabi]

I’m gonna watch all your videos. So nicely explained! Thank you ❤