Prime Mortgage Requirements: A Look at Then and Now
One effect of the housing market's collapse has been tougher requirements for prime mortgage loans. While there have been some hints in recent months that lenders are loosening these strict requirements, there remains a wide gulf between previous and current requirements.
Home Mortgages: What is a Debt-to-Income Ratio?
Learn what a debt-to-income ratio is and how lenders use it when reviewing your mortgage application. Mortgage lenders use a debt-to-income ratio (DTI) along with other criteria, including assets and credit score, to determine whether you’re a good risk for the loan you’re asking for. This ratio compares your overall monthly debt to your gross monthly income.