Homebuyer101: How To Calculate Your Debt To Income Ratio + The Importance In The Home Buying Process

Подписаться 90 тыс.

Просмотров 62 тыс.

50% 1

#debttoincome #mortgage #homeloan
Homebuyer101: How To Calculate Your Debt To Income Ratio And Why You Need To Know Those Numbers When Buying a Home!
What is Debt to Income Ratio? The debt to income ratio is the percentage of a consumer's monthly gross income that goes toward paying debts. This is extremely important when buying a house and at the beginning of your home buying process with any real estate!
If you're a first time home buyer or real estate investing, this is a very important topic for you and your family to understand!
I am licensed in 48 states and I am happy to be your mortgage lender 😁 707-478-0637
☑️Here's how to contact me and my team
--------------------------------
⭐Have mortgage questions? Pick a time that works best for you here
calendly.com/j...
⭐Ready to get preapproved?
tinyurl.com/Ze...
⭐ Call Me: My cell phone is 707-478-0637 I am happy to help. Let’s get you home!:)
⭐Google Reviews: tinyurl.com/je...
--------------------------------
Licensing info: Jennifer Beeston, SVP Mortgage Lending NMLS 247743 at Guaranteed Rate, Inc. NMLS 2611 Branch Address: 1750 N University Drive, Coral Springs, Florida, 33071 Equal Housing Lender
For licensing, go to www.nmlsconsumeraccess.org
Top 1% in the nation 2016-2022 www.zerostressmortgage.com
NMLS 247743 Guaranteed Rate NMLS 2611
To access Guaranteed Rate:
www.guaranteed...
www.guaranteed...

My State License Numbers:
AK - AK247743, AL - 72998, AR - Licensed, AZ - 1007541, CA - CA-DOC247743, CO - 100516570, CT - LO-247743, DC - MLO247743, DE - MLO-247743, FL - LO66900, GA - 70357, HI - HI-247743, IA - 33839, ID - MLO-2080247743, IL - 031.0054184, IN - 41478, KS - LO.0039219, KY - MC717200, LA - Licensed, MA - MLO247743, ME - Licensed, MI - 247743, MN - MN-MLO-247743, MO - MO-247743, MS-247743, MT - 247743, NC - I-189119, ND - NDMLO247743, NH - Licensed, NM - Licensed, NV - 66544, NY - Licensed, OH - MLO-OH.247743, OK - MLO20600, OR - 247743, PA-247743, SC - MLO - 247743, SD - MLO.08498, TN - 205478, TX - Licensed, VA - MLO-40552VA, VT - VT247743, WA - MLO-247743, WI - 247743, WV - LO-247743, WY - 8203
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.
More Helpful Content:
Home Loan Basics: • What is a Short Sale? ...
Loan Programs: • VA Mortgage Loans - St...
VA Loans: • VA Mortgage Loans - To...
Real Estate Breaking News: • FHA Loan & VA Loan Cha...
Mortgage Rates/Refinancing: • Is NOW the Best Time t...
GR NMLS ID #2611 www.nmlsconsumeraccess.org
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.

Опубликовано:

26 сен 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 180

@jvolstad Год назад

I'm debt-free and have money in the bank! Thank you Dave Ramsey.

@neorabado8990 2 года назад

I absolutely love how raw you are in your videos. You don’t hold back and tell it like it is!

@JenniferBeeston 2 года назад

I appreciate that, Neo! Thank you so much for watching! :)

@kashiseverything2259 Год назад

That's exactly what I like about her.

@shkhamd 2 года назад

Thanks for explaining Front End and Back End differences. My gut feeling always have been that the Front End is little misleading because its only half the story. The core idea of D2I was to understand how much money left once the borrower makes all the different debt payments and only the back end calculation truly reflects that. If I am left out with 300 dollar in my checking account once all the monthly debts are paid, then it's too much of a risk getting into a 30 years of commitment like that. I'd better rent until my financials change positively.

@lbrown8040 4 года назад

She had me at “Dave Ramsey!” Lol Thank you again for the education!

@sarahwilson9213 4 года назад

Keep your expenses low and income as high as you can. Great video.

@romeostarlite21 3 года назад

I wish more folks pay attention to these numbers because I have a lot of them trying to buy homes they can't afford, like why do you badly want to be house poor??? Thanks for this amazing video Jennifer!

@JenniferBeeston 3 года назад

Thank you!

@clozell4 2 года назад

Thank you for doing a realistic example of income. I hate when I watch these videos and it's always targeted for people who make $300k a year buying a million dollar home.

@sherrimamounis5184 3 года назад

This video was very helpful for planning to buy my house in the next 2 years! I see what I need to pay off to afford my dream home! Thank You Jennifier

@JenniferBeeston 3 года назад

Thank you!! I am glad it helped!

@kanelive2686 4 года назад

Thanks Jenn! You keep it simple and to the point! You gained a subscriber.

@JenniferBeeston 4 года назад

Kenny lovelife thank you Kenny!

@herculesotieno4942 2 года назад

You did a good job on DTI , i think this makes people to not understand what they could qualify for in a mortgage

@JenniferBeeston 2 года назад

Thank you!

@mouradBendidi-gu7qu 10 месяцев назад

Thank you for help and the way u explain things

@JenniferBeeston 10 месяцев назад

Happy to help

@irinemartin5045 2 года назад

Thank you so much Jennifer for this video! I’m watching all your videos back to back. Can you make some videos for brand new real estate agents? Im studying to take the test in FL right now. I need all the help I can get!

@JenniferBeeston 2 года назад

Great suggestion!

@myeverydaylife5529 3 года назад

This video helps me a lot im from new mexico and im looking forward to buy the house. Thank you so much.

@mjbowles 2 года назад

Thank you so much for this video! Just lets me know I've got some work to do. We eventually want to buy a house in 2023 or 2024. By the end of the this year our goal is to pay off all of our debt and save for a down-payment on a house.

@JenniferBeeston 2 года назад

Those are fantastic goals. If you have not checked out www.mint.com check it out as it is really good at helping you figure out where you spend and strategizing a budget

@mjbowles 2 года назад

@@JenniferBeeston Yes! I have been using mint for the past year and it has been fantastic. Before that it was always a zero based budget. I am always learning, reading, and researching about all things finance, real-estate, etc.

@JenniferBeeston 2 года назад

@@mjbowles it is fantastic you are taking the time to learn and research before you buy. It will pay off for decades

@robertgerber6746 3 года назад

Please get licensed in Massachusetts.

@JenniferBeeston 3 года назад

I am now:)

@MinhTucson 8 месяцев назад

Thankyou for the video on delt to incomes ❤ ❤

@JenniferBeeston 8 месяцев назад

Happy to help:)

@Thequeencove 4 года назад

It was so easy to follow along thank you❤️👍🏽

@JenniferBeeston 4 года назад

❤️❤️❤️

@49Macman 11 месяцев назад

Thank You! I plan to do the math later.

@garrettcoleman8079 11 месяцев назад

Thanks very helpful you cleared up alot of questions

@JenniferBeeston 11 месяцев назад

Glad it was helpful!

@chedvah623 3 года назад

You're a God send. Thanks for sharing such valuable information. Blessings!

@JenniferBeeston 3 года назад

You are so welcome

@alvindowd5232 3 года назад

Thank you. The more I research, the more information that I can process.

@mr.castillo2310 Год назад

Just wanted you to know that I've been watching your videos for some time Love the advice Love the passion that you have for your career and I will continue watching your videos . I am in the beginning stages of my home buying journey and have tooken a lot of what you have said and have put them to practice and might I say you're not bad on the eyes either if I have any questions I know that I can reach out to. A lot of what you say about debt to income has helped me to know exactly how much I can afford nowadays with interest rates so high thank you very much

@charliehenderson38 11 месяцев назад

Great information, very helpful!!!

@brettpowers9892 4 года назад

Im getting ready to buy a house and I needed this. thank you.

@JenniferBeeston 4 года назад

Glad I could help!

@josephanthony1655 4 месяца назад

Licensed in 35 states! How do you go about renewing ??

@JenniferBeeston 4 месяца назад

I love the knowledge coop for continuing education.

@annkoehler8017 4 года назад

Wow, that was an eye-opener! Thank you so much!

@fredsalfa Год назад

I wondered why the banks ask me these specific type of questions and never worried about my excessive eating out all the time! I worked out my Front End is 19% and Back End 32%

@JenniferBeeston Год назад

It’s wild right

@michealsizemore1 4 года назад

Great video. Thanks for sharing.

@s.j.5850 4 года назад

Ok Jennifer, how does debt to income ratio work when you are retired and the "gross" is more or less your net income (no significant taxes deducted)? That formula is factoring in federal, state, local, and FICA taxes. If I don't have those upfront deductions then my looks smaller on paper. Is there a different debt to income calculation for me? One would think the net is a better indication of whether or not you can afford a particular house - mortgage, taxes, etc.

@eyeinthesky6702 3 года назад

I Love ur Channel! Great advice and knowledge!!

@JenniferBeeston 3 года назад

Thank you!:)

@russlea6383 2 года назад

Thanks, Coach.

@jessicacalaci7380 2 года назад

Just what I needed

@JenniferBeeston 2 года назад

Happy to help!

@johnathantran3852 4 года назад

Can you make a video with a VA home loan purchasing a multi-family? Potential rent income from other tenants

@JenniferBeeston 4 года назад

Johnathan Tran yes! Great idea. I will work on one:)

@Xtremeproducts 4 года назад

Great question

@NeoSoulCrew 2 года назад

Your former video had funny comments on it. Great information 👍

@JenniferBeeston 2 года назад

The comments truly were epic 🤣

@mitzyzollo4706 Год назад

What if I pay off all my credit cards before I start looking for loans? I don’t have a car payment. Would they take in consideration previous credit cards activity history? 🤔

@JenniferBeeston Год назад

For score yes but it would not affect debt to income

@mysticalfairy32 2 года назад

I love this

@kericamacho1 3 года назад

Hi Jennifer. Great information from all your videos. My husband is active duty in the Army. He just received his orders for our next duty station in Sartell, MN. That has nothing to rent. From looking at different sites the houses go quickly that are for sale. We had no thoughts about buying until we saw they did not have rentals that would fit our family of 6 and 2 dogs. Also, the area we wanted due to school ratings for the kids. We do not have a lot of savings. So, we trying to save because fees and closing cost. But his start date is July 2021. So, I have been watching all your information. Because we are moving our BAH will be different. Changing our gross. When doing the income part. How does that work. His LES will show our current BAH. Is it better to call you or fill out the form online. I also no if you shopping for lenders we have to do it within a time frame to keep from the credit score getting hit. TIA

@JenniferBeeston 3 года назад

Hi Keri, we will ask for what his BAH and BAH will be at new location and will gross that up. Shopping lenders within 30 days is the general rule. Nice to meet you:)

@davids251 4 года назад

I’m learning so much WOW.

@b.e3366 4 года назад

How do you calculate it if you have zero debt?

@JenniferBeeston 4 года назад

Just do front end ratio as back end will be the same if you have no debt

@vag4lvevo22 Год назад

So our front end is at 0.36% and back end is at 0.39% how come our lender told us that our front end is 46.5% and our back end is at 53%. I don’t understand. And she told us that our mortgage payment will be $2,400 a month. In other words thats whats called PITI, right?

@JenniferBeeston Год назад

My guess is you were not doing the projected monthly payment of the new property including taxes and insurance

@Jcakiiiii 3 месяца назад

What if you have a side business (LLC)? Does rent for the LLC building count?

@sdavis6456 4 года назад

Are you licensed in Colorado? How about a video for those of us that are retired. 🙂

@jamaicanblackqueen Год назад

I want to keep my mortage payments like I'm still paying rent. I told my realtor to keep me at that number and no more. I'm also looking at HOA fee less than two hundred.

@jenjen5184 Год назад

I get a 10% bonus every year. How does that factor in to my DTI? I have gotten it 3 years in a row already.

@JenniferBeeston Год назад

we can use it:)

@guillermorobles1582 3 года назад

thank you.

@julianaquino5778 Год назад

Thank you for this informative video. My question is what if my credit card/student loan/auto loan debt is very little to none but only with the expected mortgage payment (PITI), my DTI for both front & back end is over 50%. Will any mortgage lender(s) still approve this if essentially the "only debt" i would have is the PITI? For example: $5,000 monthly gross income $3400 PITI Back End DTI: 68% Front End DTI: 68% Thank you so much in advance.

@hy1ib Год назад

You you gross up income by 25% for vets using disability income?

@JenniferBeeston Год назад

Yes

@boricuamom87 3 года назад

Very helpful

@HieuPham-zr2qb Год назад

Well Educated Individual LOve Yall:)

@JenniferBeeston Год назад

Ty!:)

@NaomiEvolved 4 года назад

God Bless you for doing this video

@kashiseverything2259 Год назад

The number nol longer exist

@asuhadude4817 3 года назад

My dti was higher then baby June's mama ima report back hopefully I can close Oct 5

@JenniferBeeston 3 года назад

lol

@purplepear8505 7 месяцев назад

How does this calculate for a small sole proprietor business?

@JenniferBeeston 7 месяцев назад

Calculating debt to income as a self-employed buyer, you want the lender to do it because they’re going to need your tax returns and it’s not based off of gross income.

@purplepear8505 7 месяцев назад

@@JenniferBeeston Thank you. What about gas and mileage? Is gas an expense?

@spencerbishop8724 3 года назад

So what if an individual has multiple credit cards with no balance, thus doesn’t pay anything per month towards credit cards?

@JenniferBeeston 3 года назад

If you pay your credit card off in full every month then I would use zero for that payment

@Lsbud 3 года назад

How can you be so honest? I am flabbergasted.

@JenniferBeeston 3 года назад

Thank you. I try to share everything I know unfiltered

@Lsbud 3 года назад

I wish everyone was like you.

@Xtremeproducts 3 года назад

I always ask the same questions. That’s y I’m addicted to her channel

@Lsbud 3 года назад

Hi Jennifer, I apologize for being so slack, I've been dealing with health issues. I forgot, what is your email?

@vag4lvevo22 Год назад

How does a lender come up with how much they are willing to lend you?

@johnashby215 3 года назад

Jennifer do you calculate your Medicare part b of148 dollars into your gross income total for ss?

@HieuPham-zr2qb Год назад

YOu should run for Senator or Speaker of the House. I vote for you 1000%

@MegaChevy65 3 года назад

If your spouse works as well and you share payment for all the bills and we are only going to use my credit for a va loan, then how does that get calculated or do they only see it as your sole income for paying rent etc?

@JenniferBeeston 3 года назад

If you are the only one on the loan they will only use your income to qualify. A credit card or car payment in your name will go against you fully if your wife is not on the loan.

@gamaphobe7 3 года назад

Does the gross monthly income include every party involved in the loan such as a husband and wife?

@JenniferBeeston 3 года назад

Yes:)

@usaintltrade Год назад

🥇

@mytravls 3 года назад

I’m in California and with this math I’m at 43% Front end due to the taxes on $800k home. It means I’m suicidal to even think of buying a home

@JenniferBeeston 3 года назад

If your back end is also 43% then you are ok

@mytravls 3 года назад

Thank you. It'll just get me higher interest rates than the market rate. Despite a good score it hasn't helped brought down than 3% even in this low interest economy 😁I

@danieljustdaniel9550 3 года назад

If i am moving, and still have my house (that I will put up for sale about 3 months before we close on the new one) , do I have to factor in the present house payment along with the new house payment. I am planning on going with a VA loan plus putting about 70K down on a new built to get lower monthly payments.

@JenniferBeeston 3 года назад

If your house will sell prior you do not have to factor in payment for that house;)

@DoritoHunter 3 года назад

For military, do you use base salary with or without allowances?

@JenniferBeeston 3 года назад

Base +allowances

@acetigg6690 3 года назад

So credit cards go off of minimum monthly income and not the total amount owed??

@JenniferBeeston 3 года назад

Min monthly payment yes

@candycane5077 3 года назад

I dont have a car payment , on both cars lol And a 830 credit score

@JenniferBeeston 3 года назад

That is excellent

@djsupadaveNYC 2 года назад

I am debt-free but I use my Credit card every month and pay it in full every month. My DTI should be only the mortgage payment?

@JenniferBeeston 2 года назад

Correct. Your front and back end ratios will be the same

@djsupadaveNYC 2 года назад

@@JenniferBeeston Thank you so much.

@rachitbhagat4919 2 года назад

Does PITI include private mortgage insurance and HOA?

@JenniferBeeston 2 года назад

YES!:)

@steveo3239 3 года назад

Is this app still running today? I am new to the channel and I also will use a VA loan so 0% down and no PMI penalties.

@JenniferBeeston 3 года назад

Yes you can go to the app store on your phone and look for Guaranteed Rate and download from there. Pick me as your person:) Rates on it are fairly accurate although once in awhile we will see a glitch so also feel free to contact me for most accurate to the min rate 707-478-0637

@canonflynt2680 Год назад

Do you add collections on to your debt to income ratio or just your active payments

@JenniferBeeston Год назад

Depends on type of collection

@RAYVEZE 4 года назад

Will you ever be licensed in FLORIDA?

@JenniferBeeston 4 года назад

I have been for 6 months;)

@RAYVEZE 4 года назад

@@JenniferBeeston I emailed you confirming our 5:30pm talk today. Look forward to talking with you and I supplied the correct number this time around!😄

@sandibaratta9734 4 года назад

Are you licensed in PA?

@JenniferBeeston 4 года назад

Not yet Sandi but thank you for checking:)

@noleksandr 4 года назад

I know one nice lender in PA

@romeostarlite21 3 года назад

This state is not fun for mortgages lol

@mr.incredible8235 4 года назад

Hey I texted the number but no reply... how do I get the app?

@sanoiabrown5097 4 года назад

are you licensed in Ga

@JenniferBeeston 4 года назад

Yes I am:)

@paulchingh2873 4 года назад

How would it be calculate if my girlfriend and I are purchasing the house together

@JenniferBeeston 4 года назад

blend all number together

@zunedog31 4 года назад

This is incredibly useful, thanks as always

@SherryXShi 4 года назад

what about rent ? should it be added in?

@josephinedavis2975 4 года назад

Can you recommend HELOC, I have VA mortgage loan@4% interest for 5yrs.@30yr. I'm paying, more, than the mortgage towards principal. I lived in florida. If i apply Heloc and all my income goes to heloc acct. is that good or what? I need advice. thank you.

@JenniferBeeston 4 года назад

I don't love helocs. Have you thought of lowering your rate on your current mortgage?

@josephinedavis2975 4 года назад

@@JenniferBeeston Thank you!! I have a question on VA loan, We got approved for 195,500.00 @4% no money down for 30 yrs. We purchased the house for $175,000.00, why we're paying the approved amt. and not the price of the house? Pls. Help me. thank you.

@VersatileRaps 10 месяцев назад

What’s the app called

@JenniferBeeston 10 месяцев назад

The new rate app does not do debt to income yet. I will do a video on it when it does. My team is working on a dti calc.

@canvaslove6354 3 года назад

Are you licensed in Nevada?

@JenniferBeeston 3 года назад

Yes I am:)

@alparker7212 4 года назад

Are you licensed in DE ?

@davids251 4 года назад

You have suggestions for self employed? I don’t do salary:/

@JenniferBeeston 4 года назад

yes I have a self employed video. All comes down to how much you write off

@rodp8183 Год назад

My front end income would look pretty good with your back end income.....

@rafftime9831 4 года назад

Hi are you licensed in New York?

@JenniferBeeston 4 года назад

Raff Time yes I am:)

@rafftime9831 4 года назад

Jennifer Beeston Thank you for your response

@neilofilanda 4 года назад

Hi, are you license in illinois?

@JenniferBeeston 4 года назад

Yes I am:)

@neilofilanda 4 года назад

@@JenniferBeeston thank you, i am preparing my self to get pre approval by nov,

@matty2time 3 года назад

She should have done this video with a $1500 a month income to satisfy the people who complained lol.

@JenniferBeeston 3 года назад

Next year:)

@tumyasubba2406 2 года назад

If I get car Mortage now can I be approved?

@JenniferBeeston 2 года назад

No idea

@TheStoneWhisperer 2 года назад

I personally don't know how you even approve ANYONE in the State of California. Even as a VA buyer making what would be considered a decent wage in any other State, my calculations tell me I should NOT spend more than $2200/month on a mortgage...LOL...Ok then...let's go shopping for a shoebox folks! LOL 😄😄🤣🤣

@nguyenpham7965 Год назад

There is NONE buyers you mention in CA, majority of them are foreigners with bookoo cash, investors, or tech people that sold all their useless stocks

@adriennecarson115 4 года назад

Are you licensed in Tennessee?

@JenniferBeeston 4 года назад

yes I am:)

@kasokachibanga8837 2 года назад

Thank you for giving me your number now I can shoot my shot🏀😂💘

@JenniferBeeston 2 года назад

🤣🤣🤣

@elenaholden5218 2 года назад

I have sent a text and I never got anything 🤔

@JenniferBeeston 2 года назад

Hmm… assuming you are looking for the app if you go to the App Store on your phone look for guaranteed rate and then pick the GR loan app and pick me as your person. Sorry you did not get response to your text. Never the goal.

@elenaholden5218 2 года назад

I just downloaded it thank you! I just realized that it’s the same place I was working with Eric there and he suddenly dropped the ball on me and stopped replying. Now I question if the rest of the people might do the same

@JenniferBeeston 2 года назад

@@elenaholden5218 no idea who Eric is. We have over 5000 loan officers not all are good. Check out my preapproval video. If you work with me and my team we will always tell you exactly where you are

@orlandocarrillo5552 3 года назад

So basically if you earn 3000 a month you are going to be able to buy a cardboard box. Goodbye California.

@JenniferBeeston 3 года назад

You should check out Lake County in California. It is beautiful and affordable.

@justthinking_6513 2 года назад

Jennifer, you are NOT an elitist!

@KD-fp3qy 3 года назад

You’re so Beautiful!!!!!!!!!!!!!!!!!!!!!!!!

@Ministeringtoday 4 года назад

You are a great instructor

@joegowac4578 3 года назад

Hi. I had several credit cards that I have paid off and now have a zero balance. I have left the accounts open to help with my credit score but it now appears that those would also be factored into my DTI even though they are paid off? So do you recommend me closing them out and watching my credit score drop or Leaving them open and effecting my DTI?

@JenniferBeeston 3 года назад

If you don't have a monthly payment on them they would not go into your dti

@joegowac4578 3 года назад

@@JenniferBeeston thank u