Debt-to-Income Ratio Explained | EP 19 (Originally Published 2-7-26)

DTI. Debt-to-income ratio. If you've talked to a lender for more than ten minutes, they've probably mentioned it. And there's a decent chance you said "right, okay" and moved on without being totally sure what they were calculating or why it matters as much as they're acting like it does.It matters a lot. Michael breaks down what debt-to-income ratio actually is, how lenders calculate it, what the thresholds are for different loan types, and the specific things that move the needle in your favor or against you. This is one of the biggest determining factors in whether you get approved for a mortgage and for how much. It's also one of the things people understand the least going in.If your DTI is too high right now, this episode also covers what you can actually do about it. Subscribe to Home Buying Made Easy and stop guessing at the numbers that control your approval.