Hi gang:
Been quite awhile since my last post. Standing right on the edge getting ready to jump in and get my feet wet. Someone straighten me out on this. Which to do 1st? If lender considers
75% of rental income added to “other”(job) income as basis for approval, yet realators and sellers need to know you’re serious and prefer that you have a pre-approval lender letter, which way should a person go? Narrow down poss. deal 1st.(multi), and have rental income for additional qualifying, or get pre-approval based on current (job) income, so agents and sellers will take you seriously?
Oh, and DTI is figured…??? Monthly “gross” pre-tax dollars
div. by monthly debt, i.e. personal home mortgage, + monthly
bills, i.e. car, CC, store chrg. cards, etc. etc. Or is it figured by
after tax dollars? Example $65K pre-tax, 28% tax bracket, 46k,
debt, $676.00 mo. “period”=? DTI?
As usual, Thanks bunches to any & all.
OK. Confused me too. Better example. $5416.00 mo.(pretax).
28% tax braket=$3900.00 mo.(after tax). Total debt=PITI &
car pymnt. $867.00. Which if i’m figuring right would be 16%
of pretax, or 22.25% of after tax. OK, c,mon now. This is the financing section.(debt to income ratio).
Thanks again!!!
hey group:
Did i post this ? on the wrong forum? Should it be over on the
noob forum? If my subject title seems to be a joke, i apologize.
Just trying to add a touch of humor. Well actually, it’s 2 questions that i’m asking. One being in regards to get pre-approval first, or line up property first? Second one being am i correct in the way lenders figure DTI? :help
Thanks
Doesn’t really matter that much…a bigger help would be to write it in discernable English…I got an "ice cream headache reading it, so I stopped…
Keith
Thanks Keith,
Well ya got me there. First post was sort of headache causing, so, that is why i added second post. But i admit second post pertains to just correct way of figuring DTI, which i’m still not sure of. Hopefully someone on here is in the lending industry, and can ans. it.
John