Tag: <span>ratio</span>

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UNDERWRITING A LOAN

When underwriting a loan lenders look at the debt-to-income ratio for a comparison of monthly debts to monthly income, this is a major factor lenders consider. Lenders like to see the ratio at or below 43%, but loans have been approved up to 50%. Example: Let’s say you are salaried and gross $4,000 per month;...

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LENDER APPROVAL: DEBT-TO-INCOME RATIO

You may have heard of this term when applying for a loan; what does it mean? Debt-to-Income ratio is a comparison of monthly debts to monthly income, this is a major factor lenders consider when underwriting a loan. Lenders like to see the ratio at or below 43%, but loans have been approved up to...