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Arvelyn Lewis' Blog

By Arvelyn Lewis, Assoc Broker | Agent in Buckhead Triangle, A...

Tighten Up Your Credit Some More

Once you have established credit, how do you get your application to purchase a home approved?  There has been so much talk over the last 2 years about it being hard to be approved for a mortgage loan.  The truth is, there is a more reasonable guideline in use to be approved.  Now the banks require a borrower to be breathing and be able to prove the validity of your income as well as show a history of re-paying loans.  Additionally, for your own protection, there is only a certain portion of your income that may be allocated to your mortgage payment. Your loan officer may discuss this as Debt To Income Ratioor DTI. Most banks would prefer to see your DTI around 30%. (banks vary in DTI%)  This percentage is before taxes and includes other monthly payments. So, if you are paying car notes and credit cards before you apply for a loan, remember these will be considered and take away from the buying power you have for a mortgage. Happy preparation.  Arvelyn Lewis, Assoc Broker 404-399-1847 www.arvelynsellsatlanta.com

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