Accurately determine your debt-to-income (DTI) ratio
With $5,000 in monthly income and $1,800 in monthly debt payments your DTI is 36%.
About Your DTI
Your DTI is calculated by dividing your monthly debts by your monthly gross income. DTI is critical because it determines how much of a mortgage payment you can afford.
Tip: Most lenders prefer a DTI of 36% and under. This also happens to be the national average. Some lenders will go as high as 43% and a select few may go even higher.