As you start shopping for homes or land for sale in North Florida, you’ll have to make sure your debt-to-income ratio, or DTI, is sufficient to get a loan – but what is DTI, and how do you know where yours stacks up?
What is DTI?
Your debt-to-income ratio is a measure lender use to determine how much money you pay out in debt payments in relation to your income. A healthy DTI shows that you have a good balance between your debt and your income, which gives lenders more confidence that you’ll be able to repay what you borrow from them.
Many lenders prefer your DTI to be lower than 36 percent, with no more than 28 percent of our income going toward your housing costs. There are lenders that will accept a DTI of 43 percent (or higher, in some cases), but they may not offer you the best interest rates and loan terms.
You can lower your DTI in one of two ways. First, you can pay down your recurring debt or increase your gross monthly income. (If you can do both, that’s even better.)
Are You Moving to Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
- North Florida Homes for Sale with Acreage
- 5 Acres of Land for Sale in Florida
- 100 Acres for Sale in Florida
- Waterfront Land for Sale Florida
- Land for Sale North Florida
- Small Farm for Sale in Florida
- Ranches for Sale in North Florida
- Land for Sale in North Central Florida
