Your debt-to-income ratio is all your money debt payments divided by your gross monthly income. The debt-to-income ratio was the most common reason for a denied mortgage application, at 40%, according to the 2024 Profile of Homebuyers and Sellers report by the National Association of Realtors. Take your total required monthly debt payments, like your monthly student loan or car loan payment. Divide that sum by your gross monthly income, she said. If the lender accepts up to 50% DTI, the borrower may be able to take up a $2,500 monthly mortgage payment.

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Persons: Clifford Cornell, Shweta Lawande, Brian Nevins, That's, Nevins, Shaun Williams, Williams Organizations: Financial, Bureau, National Association of Realtors, NAR, Francis Financial, Bay Equity, CNBC, Paragon Capital Management Locations: New York City, It's, Denver