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Warning: that 28% DTI number shocked me more than the down payment
I thought saving $18,000 for a down payment in Sacramento would be the hard part, but my lender ran the numbers and told me my debt to income ratio had to stay under 28% for the loan to work. Turns out my $410 car payment and $90 phone bill were pushing me right to the edge, so I paid off the car in March just to get approved. Nobody warns you that your monthly bills matter as much as your savings, not just the upfront cash. Did any of you have to pay off debt to hit a specific ratio before you could buy?
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the_faith15d ago
Wait, is 28% really a hard rule or just what your one lender wanted? I always heard the number was more like 36% or even higher, so maybe your guy was extra strict (or maybe things got tighter lately). Paying off a whole car just to get approved sounds pretty drastic when you could've shopped around for a different lender first. Not saying your bills don't matter, but this feels like one person's math being treated like the law.
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