below that, they’re more careful. DTI is the percentage of your grossincome that will be consumed by your big bills such as a mortgage or rent (^)
payment and loans, including the car loan you’re trying to get.
payment that isn’t over 15 percent of your gross income.TIP: Using the payment estimator below, try to aim for a loan^
As an example, if you make $4,000 a month gross, they’ll want thepayment to be $600 or less. They’ll probably also have minimum monthly (^)
gross income requirements (for at least the primary applicant) of $3,000 orso.
LENGTHS OF EMPLOYMENT AND RESIDENCY
Stability in your job and where you live matter to lenders, though slightlyless than they used to, post-recession. But these are still important and
may affect your likelihood of getting a loan, though probably not the interestrate. Lenders like you to have been on your current job for over two years
and have lived in the same place for at least that long.
THE COST OF MONEY
This is key to know before you go shopping. Each thousand dollars youborrow will cost you a certain amount every month, based on the interest (^)
rate and the term of the loan. The cost of money is expressed in terms of a
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(Barry)
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