The One Number That Could Make or Break Your Mortgage Approval!

by Amber Tkaczuk

When it comes to getting approved for a mortgage, most people focus on one thing: income. And while your income does matter, there’s another number that can be just as important—if not more.
Let me introduce you to the Debt-to-Income Ratio, or DTI.

What Is DTI?

Your Debt-to-Income Ratio measures how much of your monthly income is going toward debt payments. That includes:

Credit card payments
Student loans
Auto loans
Other recurring debts

Lenders use your DTI to determine whether you can realistically take on a mortgage without getting financially overextended.

Why It Matters for Mortgage Approval

When you apply for a home loan, lenders don’t just want to see that you’re earning money—they want to know how much of that income is already spoken for.

Here’s how it works:

Example 1:

Monthly income: $6,000
Monthly debt: $2,400
DTI = 40%

Example 2:

Monthly income: $6,000
Monthly debt: $1,000
DTI = 17%

Lower DTI = better approval odds.

Even if your income looks solid, a high DTI can severely limit the size of the mortgage you’ll qualify for. In fact, most lenders won’t approve borrowers with a DTI over 43%.

How to Improve Your DTI
The good news? You’re not stuck with your current DTI. A few smart moves can make a big difference:

✅ Pay down credit card balances
✅ Hold off on big purchases (yes, even that shiny new car)
✅ Consider consolidating debts to reduce your monthly payments

Lowering your DTI helps you appear more financially secure—and opens the door to better loan terms and smoother approvals.

Your Debt-to-Income Ratio might not get as much attention as your income or credit score, but it plays a massive role in your homebuying journey. The better your DTI, the more confident lenders will be in approving your mortgage.

Have questions about your DTI or where you stand financially?
Just reach out and let’s chat! I’d love to help you figure out your best path to homeownership.

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