speedyforme wrote:
OK so when they ask you for your annual gross income, easy
when they ask you for expected heating costs, easy
when they ask you about your down payment, easy
when they ask you about monthly debt and give car payments, credit card debts, school loans etc. do they just mean obligated debt, not like monthly expenditures right? so say I have no credit card carryover because I pay it off every month, I have no more student loans, I don't have anything on my car because I fully own it etc, does this mean my monthly debt = $0???
When your credit is pulled they will have all the info they need. What is calculated are your minimum monthly payments(all other debts) and your proposed
new house payment with taxes and insurance(there is absolutely no reason to have PMI). I use a program called Calyx personally, and after I pull credit and
type in how much a borrower earns the program gives me the DTI. If you want to do it yourself, just figure out all your minimum payments and you pre-tax
income, any disability or social security you can multiply by 1.25% usually. In your case you have no debt so add up your proposed house payment and if you are
spending less than 50% of your income on the house you should be ok. Don't get a variable rate, brokers push them so you keep coming back every few years.
Plus you will be fucked if your house depreciates in the next couple years, which could make it hard for you to re-fi and put you at an ungodly rate. Good
luck.
