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How to lower DTI before applying for a home loan

Banks often want DTI under 40–45% — cut debt, raise income, or delay the application.

DTI = monthly debt payments ÷ monthly income × 100. Lower is better for approval and terms.

Pay down cards and personal loans first. Close unused cards or consolidate if it saves money.

Raise income or wait 6–12 months for debt to fall, then apply for a home loan.