How does my debt-to-income ratio affect getting a mortgage?

Your debt-to-income (DTI) ratio – monthly debt payments divided by gross monthly income – is one of the first things mortgage lenders check. Many conventional loans look for a back-end DTI (all debts plus the new housing payment) at or below 43%, though some programs allow higher with strong compensating factors. High credit card minimums, car loans, and student loans all eat into the room available for a mortgage payment, lowering how much home you qualify for. Paying down revolving debt before applying does double duty: it cuts your DTI and often lifts your credit score by reducing utilization, which can earn you a better rate. Even paying off one card with a large minimum can meaningfully improve your numbers. Don't take on new debt in the months before applying. Check where you stand at wealthserene.com/assessments/mortgage-readiness.