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I'm thinking of buying a home (1st time). Is a DTI ratio of 17/32 good enough to ask for a loan and get pre-approved?

Hello,I'm thinking of buying my first home. According to topagent.co DTI calculator, my ratio is 17/32. With a credit score of approx. 700, do you think it would be reasonable to look for financing? I've been reducing my debt for the last 2 years so I don't really have a down payment at this point. (Maybe FHA is the way to go?) I want to be realistic before wasting my time and the bank/CU/broker's time.Thanks in advance for your answers. by omark5_600_159 from Beaverton, Oregon. Apr 9th 2012 Reply


James Barath (JamesBarath)
#1 ranked lender in Indiana - 352 contributions

FICO score and debt ratios aside, speaking with a local qualified mortgage professional is the prudent thing to do at this stage. They can discuss all your home loan options for the areas you desire to purchase a home and if any first-time home buyer programs available. Since you are in Beaverton, OR you might want to give Jake Planton of Rose City Mortgage a call. He can be reached at 503-475-3788. Happy Monday!

Apr 9th 2012
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Travis Newton Oregon Homes For Heroes (Travisapproves)
#30 ranked lender in Oregon - 4 contributions

Yes, your debt ratio's are perfectly in line! It depends on where you would like to buy, but FHA (3.5% down payment) or USDA (0 down payment) may be the best options for you. Feel free to contact me wiht any further questions. I'd love to help! Travis Newtontnewton@englending.com503.931.4490

Apr 9th 2012
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David Feathers (david@avelloe.com)
#26 ranked lender in Oregon - 3 contributions

I would have to echo the sentiments of my fellows here that the debt ratios are in line for all types of financing. Your credit will have to be reviewed to make sure that minimum credit and FICO score requirements are met but the DTI sounds fine. You definitely need to speak with a local mortgage professional to make sure all is well - I would direct you to a local mortgage broker who can do all of the shopping for you, and if you would like to contact me please feel free - david@avelloe.com - 503.752.2357

Apr 9th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Hey Mark.. there's more to getting approved then just ratios and credit score... the whole package has to fit... Get with a local mortgage broker, not a bank, and apply with them.. brokers have access to numerous lenders and can find the right lender for your particular scenario.. they will most always have lower rates, and lower fees... your scores are sufficient and if you're calculating your ratios accurately, they are in line as well.. WilliamAcres.com

Apr 9th 2012
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Linda Bodaly (lbodaly)
#16 ranked lender in Washington - 1 contribution

Enter your answer hereYour debt to income ratio's are fine, do you know what your credit score is? Feel free to give me a call I'm a broker in the Portland area, thank youLinda Bodaly---NMLS# 106083503-709-3193

Apr 9th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Absolutely you should begin looking. Start with the financing. You want to know what price range you can comfortably afford, and qualify for, but with DTI's of 17/32 and 700 FICOs, you should have no problem. Make sure you work with a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Banker/Broker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and help guide you into the one that makes the best sense for your situation. In today's market, you typical banker is more interested in getting a loan app into the system than in helping you understand the things you need to know make wise decisions. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Apr 9th 2012
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Randy Free (rfree@opesadvisors.com)
#20 ranked lender in Oregon - 51 contributions

It sounds like your DTI and credit score are not the issue. The down payment is your hurdle. Although a 3.5% down payment FHA loan is an option and it is a good option if you want to use 100% gift money from a relative, or you can do a 0% down USDA Rural Development loan outside the city limits, I would prefer to put you in a 3% down conventional loan, if possible. As of this month, FHA upfront and monthly mortgage insurance rates are going up. In addition, starting May 1st mortgage insurance rates are going down for a conventional loan.Opes Advisors is a direct-lender mortgage bank and we fund the loan with our own money. Our processing, underwriting and doc preparation takes place, locally, in our building. We have the ability to broker loans as well, but since we can do nearly all loan types "in-house" with excellent interest rate pricing, we seldom need to. If a loan is brokered, then there will be a "middle-man" company will be involved. There is more hassle with the paper work, and the communication is diluted. In contrast, we are a direct lender to Fannie Mae. There is a benefit to working not only with a local lender bank that is well priced, but also timely, efficient, and knows exactly where the loan is at during the process. Please contact Randy Free to go over your scenario in more detail at: rfree@opesadvisors.com or 541-984-5626 Ext.111

Apr 9th 2012
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