Thank you for educating us how DTI is calculated. I have spoken to several Lenders and didn't quite understand how our debts affected the pre-approval amount. Now it's very clear and after watching this, we will hold off our decision to buy.
Soo good! Thank you! I am starting to think about buying a house/ land. I just found your channel so that is perfect timing :) love how straight forward your videos are!
Thank you so much! I am happy to hear that my videos have been helpful to you! If you have other questions/topics that you want to know more about, please let me know! I'll make some videos for them 😊
Why is Nicole so cool and clear and smart? This is the type of stuff High Schools should teach. Not “Texas History”, something no one cares about. I bet not even colleges teach. Nicole is amazing!
I just found your channel and....I Love It!! Thank you, thank you, thank you for educating inmigrants like me!! Now: what if I have NO Debts AT ALL!! What will my DTI ratio will be???
The video was very interesting but im just curious, rather than all the dividing to find out the dti to find the 45%. If you know your gross income, why not just find 45% of whatever the gross income is? It seems much simpler. Then figure out your debts and whats left would be what you qualify for with a mortgage payment.
Yes 👍 I now get it! Why does my lender want to sell my car in order to qualify for a home loan? My car payment is $442.85 and my bal is $3900. I bought this car in 2016 off the showroom and it only has 3900 miles on it…
If you’re paying off IRS or any other payments that are being drafted from your checking acct The mortgage company’s will factor that in I pay 250 a month for IRS payments that aren’t on my credit report And the mortgage company added it to my debt to ratio Child support alimony anything youre paying except utilities phone bill They want to know and the mortgage companies will find out when they pull your bank statements
I owe about $50,000 in credit card debt that has my score unacceptable for a home loan right now. Best thing I can do is pay down as much as possible in the next 18 months and then see about where everything looks. There's no way I can get approved at this time, there's too many derogatory marks on the report, now I see how to play the game.
I’m a Disabled vet that makes over well over 6figures per year and I have 0 debts no credit card no car payment and I was told today that I no longer qualify for my loan. I had 1 job paying 140k per year which I lost due to layoff And one paying 110k per yr which I still have And I get disability income of 2500 per month. This is the America I bled for.
I submitted a application to USDA in Monticello Arkansas. I’m on SSDI n have a part-time job. I been living here in Dermott at this house I want to buy for 14 years.I also have a child. My credit jacked up. I turned n everything they needed. I told them I working on my credit as of right now. I just don’t want to flat out be denied. With covid I mean it’s hard to get in touch with somebody. They say they are out of resources n they will become available in 10 months n I was like WHAT you’re the federal government . But that gives me time to get my credit straight but I need somebody who wants to get me approved n who is passionate about that
USDA does have to get funding approved. They receive a certain budget each year for loans and sometimes they do run out of funding. It is my suggestion that you continue to work on your credit. If you get up to a 620+, you can likely find a local lender that will have funds and give you the usda loan without having to go through them directly.
I'm trying to calculations but I just don't get it. I can understand yours and how you explain everything is so simple but I just can't figure mines out...
Wow truly you are Amazing I finally got it , I watched so many similar videos I was not able to get it , I hope you don’t mind if I send your videos to my friends?
If my husband was self employed the past twenty years and he has now started a new job within the same field but for a company, how long do we need to wait to apply? Do we wait for a whole year after him starting to file taxes to show his yearly gross? We had trouble in the past getting approved since he was self employed and after deductions his pay didn’t look like a lot. This is all new to us.
I just discovered your videos and I love the thorough explanations in easy to understand language. If I am self employed, which figure on my 1040 tax returns do I use to calculate gross wages? Thank You!
I am so happy that you find the videos helpful! 😊 As a self employed individual lenders are going to look at your net income after deductions. They will look at your most recent 2 years of tax returns and divide the net income by 24 months to give them a typical monthly income. One of the big obstacles is the fact that it is net income. When I buy homes, I have to go through the same process.
Thank you so much for this video! Quick question. How come we use the gross income and not the net? Isnt the net the actual money you have ( after taxes ) ?
Good question Jorge! It is the job of the lender to sell you a loan. They do not necessarily care how practical your payment is after you close on the loan. So lenders will use your gross income when calculating how much you can afford. It is your job to make sure that you have enough take home pay to feel comfortable with those payments!
So if you don't have to add groceries, gas, investing, utilities, spending money..then your DTI is Zero? Car payment, house payment, CC payment, student loan payment those are the only things you have to take into account?
Superrr Helpful and easy to understand!!! When applying for a loan as a married couple and making $50K. Can I make my numbers based on a Gross income of $100K so that our DTI is lower and the number we can afford higher to show the bank?
Alright ! i"ve been getting ur approach but , there "re something you missed up while DEBT ratio that's about property tax, utility bills may be those will effect on DEBT RATIO
Wow great video! I typically spend over 50% of income on credit every month...but I pay it in full every month. Can you tell me how this would affect the DTI?
Even if that rent is reported to your credit, lenders will not include your rent when calculating your DTI because you will no longer be paying rent when you buy a house!
What’s would be the total amount you think we should have in savings for a house aside from grants and loans? I understand we don’t need to have a big amount of savings because of the programs or loans but what would be a safe zone per say for ourselves to finally say ok we think we’re ready to commit into searching for a home? We’re looking into start with our home process but so far we only have around 5,000 in savings I’m a little worried that it won’t be enough after grants or the loans but we would be a first time home buyers
Oh I suck at math but I have 0 monthly debt payment. I got lucky and went to college free, I took 2 years and bought my car cash, and I don’t owe anything on my credit cards. My monthly debt would just be 0?
Your explanation was paced at a speed I could understand, and your visuals were easily comprehensible. Thank you so much for this useful introduction.
Thank you for educating us how DTI is calculated. I have spoken to several Lenders and didn't quite understand how our debts affected the pre-approval amount. Now it's very clear and after watching this, we will hold off our decision to buy.
Soo good! Thank you! I am starting to think about buying a house/ land. I just found your channel so that is perfect timing :) love how straight forward your videos are!
Thank you so much! I am happy to hear that my videos have been helpful to you! If you have other questions/topics that you want to know more about, please let me know! I'll make some videos for them 😊
You are absolutely my new favorite real estate channel on RUclips. Thank you!
Thank you Salem!
your accents are very clear with well explained.
Thank you! 😃
Thank you so much I love the way you explain so clearly! I live in Texas and I hope to find someone like you here!
You are so welcome! Wishing you the very best on your home buying journey! Let me know if I can help in any way. 😊
I have just hit subscribed. Thank you, for explaining simply the rationales behind these numbers
Through this video and an online DTI calculator, this has given me a lot of great information. Thank you!
Why is Nicole so cool and clear and smart? This is the type of stuff High Schools should teach. Not “Texas History”, something no one cares about. I bet not even colleges teach. Nicole is amazing!
More money to be made off of people when they don't know about finances. Keep 'em dumb you know?
Knowledge weighs nothing, but is invaluable. Thank you
My pleasure!
Super helpful! I'm def starting to feel more confident about being able to afford and get approved for a home loan. :)
You’ve got this! I was terrified about the process when I bought my first house but the more I learned, the better I felt!
Thank you, Thank you. THANK YOU .. That was a great explanation...I was unable to figure it out on the online DTI calculator..lol
This breakdown was very easy to understand. Thanks
That trap beat is litty
I just found your channel and....I Love It!!
Thank you, thank you, thank you for educating inmigrants like me!!
Now: what if I have NO Debts AT ALL!! What will my DTI ratio will be???
This is the only video that made me understand! Thank you!
Perfect explanation and great job explaining different scenarios!
Thank you for this! It was very clear and concise.
This is a very clear explanation. Best video on this topic I’ve seen. Thank you!
Thanks for watching!
My parents are from Arkansas. I am seriously considering buying my first home but working on credit and paying down debts
Thank you Nicole. Your explanation is the clearest that I could understand.
Also include alimony and child support obligation in DTI ratio
Thank you I really appreciate the time and explanation I feel confident I can afford a house
I am Pakistan. It is very good lecture DTI and understand easy.
To find fast 45% debt ratio just multiply your income 5000 by 0.45. In example 5000 × 0.45 = 2250 $
Awesome extremely informative I now have a better perspective of debt to income for buying my first home 👍
Thank you Nicole for your expertise. I will be reaching out to you to see about the USDA path to home ownership. Blessings to you!
Thank you so much...I appreciate your time and clear explanations!!
You are so welcome! Glad it was helpful! 😊
Awesome video and well explained! I appreciate the much neeeded information 😊
The video was very interesting but im just curious, rather than all the dividing to find out the dti to find the 45%. If you know your gross income, why not just find 45% of whatever the gross income is? It seems much simpler. Then figure out your debts and whats left would be what you qualify for with a mortgage payment.
Great information in the video. I learnt. Thank you. But the background music was loud and distracting and made it difficult to hear you sometimes.
Simplicity at its FINEST👌🏾👌🏾
You are so awesome and thank you so much.
You are so welcome😊
I pulled from my 401k and paid off my car and credit cards and then just saved the rest. looking to buy a house by the end of this year fingers 🤞
Excellent explanation, thank you breaking it down clearly.
You're very welcome!
This was an awesome breakdown. Thank you so much.
Perfect explanation! Thank you so much!😊
You're very welcome!
Yes 👍 I now get it! Why does my lender want to sell my car in order to qualify for a home loan? My car payment is $442.85 and my bal is $3900. I bought this car in 2016 off the showroom and it only has 3900 miles on it…
If I am married will debt to income ratios be combined? Great content. I’ve already watched 3 videos, will subscribe now ☺️
you are wonderful teacher!!! Thank you for explaining this.
If you’re paying off IRS or any other payments that are being drafted from your checking acct
The mortgage company’s will factor that in
I pay 250 a month for IRS payments that aren’t on my credit report
And the mortgage company added it to my debt to ratio
Child support alimony anything youre paying except utilities phone bill
They want to know and the mortgage companies will find out when they pull your bank statements
When calculating monthly debt to income ratio, is rent included in the monthly Dept payment?
Rent is not included in your monthly debts when calculating your DTI.
@@NicoleNark Your new proposed house payment will be.
Are property taxes, pmi, and homeowners insurance included in this calculation?
I owe about $50,000 in credit card debt that has my score unacceptable for a home loan right now. Best thing I can do is pay down as much as possible in the next 18 months and then see about where everything looks. There's no way I can get approved at this time, there's too many derogatory marks on the report, now I see how to play the game.
Very informative video!
Very easy to digest thanks!! 🙏🏽
Thank you for how you explained this in detail.
I’m a Disabled vet that makes over well over 6figures per year and I have 0 debts no credit card no car payment and I was told today that I no longer qualify for my loan.
I had 1 job paying 140k per year which I lost due to layoff And one paying 110k per yr which I still have
And I get disability income of 2500 per month.
This is the America I bled for.
Oh wow, we may have been ready years ago😮
Beautiful!!!! Nicole
Thank you so much for this video. It was very informative.
Thank so much. This was really helpful
Glad you thought so!
Thank you for this video. Helps me actually understand this.
You're very welcome!
Clear, simple, and helpful. Thank you for the content!
Glad it was helpful!
Does using a credit card for all monthly expenses but paying off that card every month without interest hurt your back end debt to income ratio?
I submitted a application to USDA in Monticello Arkansas. I’m on SSDI n have a part-time job. I been living here in Dermott at this house I want to buy for 14 years.I also have a child. My credit jacked up. I turned n everything they needed. I told them I working on my credit as of right now. I just don’t want to flat out be denied. With covid I mean it’s hard to get in touch with somebody. They say they are out of resources n they will become available in 10 months n I was like WHAT you’re the federal government . But that gives me time to get my credit straight but I need somebody who wants to get me approved n who is passionate about that
USDA does have to get funding approved. They receive a certain budget each year for loans and sometimes they do run out of funding. It is my suggestion that you continue to work on your credit. If you get up to a 620+, you can likely find a local lender that will have funds and give you the usda loan without having to go through them directly.
Thank you for this DTI calculation.
Glad it was helpful!
Thanks for your dti advice
So helpful! Thanks
I'm trying to calculations but I just don't get it. I can understand yours and how you explain everything is so simple but I just can't figure mines out...
Wow truly you are Amazing I finally got it , I watched so many similar videos I was not able to get it , I hope you don’t mind if I send your videos to my friends?
Happy to help! Please share! 😊
Thank you for explaining this so clearly.
Happy to help!
I understood DTI.
If my husband was self employed the past twenty years and he has now started a new job within the same field but for a company, how long do we need to wait to apply? Do we wait for a whole year after him starting to file taxes to show his yearly gross? We had trouble in the past getting approved since he was self employed and after deductions his pay didn’t look like a lot. This is all new to us.
This was great
How do you calculate the monthly mortgage when you’re searching? How do you know what you can and can’t afford? Thanks!
From her explanation it looks like 25% of your income for mortgage payment.
There are mortgage calculator online. Hope this helps!
Gracias, muy claro como lo explicas. Hablo español , entiendo poquito Inglés, pero lo explicas también que es bien entendible, gracias
What a great video , thank you so much
I just discovered your videos and I love the thorough explanations in easy to understand language. If I am self employed, which figure on my 1040 tax returns do I use to calculate gross wages? Thank You!
I am so happy that you find the videos helpful! 😊 As a self employed individual lenders are going to look at your net income after deductions. They will look at your most recent 2 years of tax returns and divide the net income by 24 months to give them a typical monthly income. One of the big obstacles is the fact that it is net income. When I buy homes, I have to go through the same process.
very easy to understand . thank you
I love your explanation. Now, how about the other expenses like, utilities and home expenses?
Thank you so much for this video! Quick question. How come we use the gross income and not the net? Isnt the net the actual money you have ( after taxes ) ?
Good question Jorge! It is the job of the lender to sell you a loan. They do not necessarily care how practical your payment is after you close on the loan. So lenders will use your gross income when calculating how much you can afford. It is your job to make sure that you have enough take home pay to feel comfortable with those payments!
Thanks for sharing this information.
My pleasure
I to buy a second home con i get 5 % pay down
So if you don't have to add groceries, gas, investing, utilities, spending money..then your DTI is Zero? Car payment, house payment, CC payment, student loan payment those are the only things you have to take into account?
Great video ! ❤
Thank you!!
Superrr Helpful and easy to understand!!! When applying for a loan as a married couple and making $50K. Can I make my numbers based on a Gross income of $100K so that our DTI is lower and the number we can afford higher to show the bank?
If you will both be on the loan, the incomes and debts of each of you will be added into the DTI calculation
Awesome explanation 🙂👍
Alright ! i"ve been getting ur approach but , there "re something you missed up while DEBT ratio that's about property tax, utility bills may be those will effect on DEBT RATIO
Thank you
Wow great video! I typically spend over 50% of income on credit every month...but I pay it in full every month. Can you tell me how this would affect the DTI?
Just as she said - whatever your minimum payment is, balance doesn’t matter
Be sure to pay before CC company reports and it won't even show up.
Hi miss Narc how can I aquire a home with bad credit and little down payment
THANK YOU
Thanks for the info Nicole 😘
Absolutely! Happy to help!
Is that just the mortgage payment or do you have to figure taxes and insurance into it?
Thank you nicole
What if you don't have any debt as far as credit card, school loans, car loans. How can I get a fair mortgage with the income that I have.
Then you will get approved for much more!
I like this video. Its so easy to understand on your explanation. You shoud try teacher too. 🤣❤️❤️
Haha I did think about being a teacher when I was in college 😂
That example you have on the board with the exception of student loan is exactly my debt and how much I roughly make a year. Thank you for this video
So things like Self lender and Rent accelerator ( *report rent payments to credit* ) Could hurt My D.T.I even though it would help raise my credit?👀
Even if that rent is reported to your credit, lenders will not include your rent when calculating your DTI because you will no longer be paying rent when you buy a house!
@@NicoleNark 😱 Very knowledgeable.. thanks🙏🏾
I have a doubt
If the person is in rented home don't we include that rent in monthly debt payments??
Nope! Because if you buy a house, you will likely stop renting and no longer be responsible for those rent payments
Great VID THANK You!!!!!!
What’s would be the total amount you think we should have in savings for a house aside from grants and loans?
I understand we don’t need to have a big amount of savings because of the programs or loans but what would be a safe zone per say for ourselves to finally say ok we think we’re ready to commit into searching for a home?
We’re looking into start with our home process but so far we only have around 5,000 in savings I’m a little worried that it won’t be enough after grants or the loans but we would be a first time home buyers
So if you minimum payment on a card card is 50 dollars that’s what you calculate for that card when trying to get your debt to income ratio?
Very helpful
I have a specific question Ms. Nicole. Please help. I filled out your form. I look forward to hearing from you.
I just sent you an email! 😊
Oh I suck at math but I have 0 monthly debt payment. I got lucky and went to college free, I took 2 years and bought my car cash, and I don’t owe anything on my credit cards. My monthly debt would just be 0?
What if your student loans are deferred and you aren’t required to pay a monthly payment?
Ditto!
What is included in the mortgage payment? Just principal & interest? Or other things?
Thank you 😊
If your student loans are deferred, would it be $0?