When you apply for a mortgage, lenders will look at your debt-to-income ratio (DTI) to determine how much you can afford to borrow.
DTI is the amount of your monthly income that goes toward paying off debt, including loans, credit cards, and other debts.
Having a loan will impact your DTI, which in turn will impact how much you can afford to borrow for a mortgage.
If you have a high DTI, lenders may view you as a risky borrower and may be less likely to approve your mortgage application.
Additionally, having a loan can impact your credit score, which is another important factor that lenders consider when evaluating your mortgage application.
If you’re behind on your loan payments or have a high amount of debt, your credit score may be lower, which could make it harder to get approved for a mortgage.
specifically, having a loan can impact your debt-to-income (DTI) ratio, which is an important factor that lenders consider when evaluating your mortgage application.
Lenders typically want to see a DTI ratio of 43% or lower. If your DTI ratio is higher than this, lenders may view you as a risky borrower and be less likely to approve your mortgage application.