Reliant Mortgage Solutions

You may know that a borrower's debt-to-income ratio is one of the largest determining factors in loan approval and the type of loan to be utilized. With the increased popularity of "buy now, pay later" options, we want to give you a reminder of what is considered debt. In addition to the items found on the credit report, here are some others that may apply.

1. Recurring payments found on a bank statement. This is where Affirm, Klarna, Afterpay, and other financing engines are often discovered.
2. Payroll deductions for any 401K or company savings account loan.
3. Legal obligations such as child support.
4. Taxes and insurance not escrowed on real estate owned.

Any of the above could be a deal breaker during underwriting if the initial DTI calculation was near the maximum allowed.

We are always here to answer your questions and take care in working on pre-approvals for you. 🏠www.reliantmortgagesolutions.com