Track your debt-to-income (DTI) ratio monthly. Set a target below 36%. Every financial decision is evaluated by whether it improves this number.
Anyone planning to apply for a mortgage or major loan within 1–2 years. DTI is a primary lending factor.
Calculate your DTI: total monthly debt payments ÷ gross monthly income × 100.
Set a target DTI (most lenders want under 43%; under 36% is ideal).
Every month, pay down debt or increase income to improve the ratio.
Track progress monthly. Use DTI as your primary financial north star.
Apply for your loan once you've hit your target DTI.