What is debt-to-income ratio and why does it matter?
Debt-to-income (DTI) is your monthly debt payments, including the new mortgage, divided by your gross monthly income. Many lenders look for 43% or less, though some loans allow more. Lower DTI makes approval easier. ListingCraft for Buyers shows the estimated payment for each home so you can see how it would affect your budget.
Paying down car loans or card balances before you apply can lower your DTI. Avoid taking on new debt while you are buying.