Introduction to Income to Debt Ratio for Richmond, VA Loan Pre-Approvals
For you to be pre-approved to buy a home in Richmond, VA or anywhere in the U.S., your debt-to-income (DTI) ratio must fall within a certain range. This is one of the many requirements home loan borrowers must meet. To get you started, you need to understand the meaning of debt-to-income ratio. Definition: Debt-To-Income Ratio The DTI ratio is simply a measure of a borrower’s monthly debt against their monthly income. The DTI ratio can also be defined as the percentage of a person’s gross monthly income that goes to pay debts.