Bills like groceries, cell phone, etc are not figured into DTI so be sure you know how much you will be comfortable spending before you start to look for a home.

If your debt to income ratio is a little high, most mortgage professionals offer stated loan programs. With a stated mortgage loan, you simply state how much income you make, provided it is within reason for your job field. Even though this option may be available to you, you still need to feel comfortable with your monthly mortgage payment.

Your debt to income ratio, or DTI, is the general basis for how a lender calculates how much of a home or a home loan you can qualify for. By using the lenders maximum debt to income ratio guidelines, your current monthly expenses, and your total monthly income, a lender is able to figure out what the maximim mortgage payment you will qualify for will be. Then based on what loan program you decide to go with and the rate associated with that program, the lender can notify you of the maximum amount you will be qualified for on a mortgage.