Not just by how good you were in paying your debts in the past, but also do you have the means to take on additional debt and have enough income to cover it all every month.\u00a0<\/p>
Lenders want to see if you have a balance, and you don\u2019t have a ton of debts.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>Also, they want to see that your income and your debts are pretty balanced. Lenders would look at how many debts can you afford as opposed to how many debts you are already paying.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>If most of your income is going towards your existing debts, a lender might see this as no room left for additional debt, and your loan application may be denied.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>When looking at the DTI, lenders know that people with lower DTI have a higher chance to get the desired loan.\u00a0<\/p>
If your DTI is low, the lender understands that there is less risk involved and would anticipate your payments accordingly.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>Borrowers with low DTI are more likely to make payments with less chance of default.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t