- Debt-to-Income Ratio
- Property Taxes
- Do you already have a specific property in mind for purchase?
- What are Property Taxes for that home?
- Are their Assessments involved?
- Does the property have HOA fees?
In short, if your DTIs are close to being maxed-out, the Property Taxes on the home you’re considering for purchase can cause you to exceed Debt-to-Income Ratios. That’s not good.
When this happens, my borrowers typically choose to resolve the issue by starting another property search. This time they consider only those homes with lower property taxes, no/lower Assessments, or no HOA fees. In other words, the homes they can qualify for.
For those hoping to buy a home, the process can seem a bit daunting. It shouldn’t … and it doesn’t have to be. Debt-to-Income Ratios can be addressed properly UPFRONT, with the right guidance and time.