What is debt to income, and why does it decide so much?

The short answer

It is your monthly obligations divided by gross monthly income. It sets your maximum payment, and paying off the right debt can raise your price more than a bigger down payment.

5 min read

What counts and what does not

Counted: the proposed housing payment, car loans, student loans, minimum credit card payments, personal loans, child support, and other obligations reported on credit.

Not counted: groceries, utilities, phone plans, insurance outside of the escrowed policy, streaming, or tuition paid out of pocket. This is why the approved maximum can feel disconnected from real life.

The highest leverage payoff

Not all debt is equal. A car loan with a four hundred dollar payment and eight months remaining hurts your ratio far more than a card with a larger balance and a thirty five dollar minimum.

Before writing a check, ask which payoff removes the largest monthly payment per dollar spent. Occasionally paying off one small installment loan raises your purchasing power by tens of thousands.

Corie Adams Lending Team

Corie Adams
Producing Branch Manager · NMLS #1875205
Network Funding, LP · NMLS ID #2297

Equal Housing Opportunity Lender
Mortgage Solutions
Company
Borrower Resources

Disclaimers, assumptions, and state licenses

Corie Adams Lending Team is a branch of Network Funding, LP. Network Funding, LP, NMLS ID #2297, is an Equal Housing Opportunity Lender. Licensing and state disclosures are available through Disclosures & Licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org). This website is not a commitment to lend. Rates, programs, payments, and qualification requirements are subject to change without notice and may vary based on individual circumstances.

© 2026 Corie Adams Lending Team · Network Funding, LP. All rights reserved.

Payment examples shown on this site are illustrative only.