💭 Let’s Keep It Real First

You can have:

✔ decent credit
✔ a good job
✔ money saved

…and STILL get denied.

Why?

👉 Your DTI is off.

And most people don’t even know what that is until a lender brings it up like a plot twist.

📊 What Is DTI (Debt-to-Income Ratio)?

DTI is simply:

👉 How much you owe vs. how much you make

Lenders use this to answer one question:

“Can you realistically afford this mortgage?”

Here’s the formula:

$\text{DTI} = \frac{\text{Total Monthly Debt}}{\text{Gross Monthly Income}}$DTI=Gross Monthly IncomeTotal Monthly Debt​

That’s it. No mystery… just math that decides your future moves.

🧾 What Counts as “Debt”?

This is where people get tripped up.

Lenders are looking at your monthly obligations, not your lifestyle.

✔ INCLUDED:

• Car payments 🚗
• Student loans 🎓
• Credit cards 💳 (minimum payments)
• Personal loans
• Child support/alimony
• The future mortgage payment 🏡

❌ NOT INCLUDED:

• Groceries
• Gas
• Phone bill
• Utilities

(Yeah… even though those feel very real 😅)

🔢 Let’s Run a Real Example

Let’s say:

• Monthly income: $5,000
• Total monthly debt: $2,000

Your DTI would look like:

$\text{DTI} = \frac{2000}{5000} = 0.40 = 40\%$DTI=50002000​=0.40=40%

👉 That means 40% of your income is already committed

📉 What DTI Do You Need to Get Approved?

This depends on the loan type, but here’s the cheat code:

🔑 General Guidelines:

• Under 36% → You look GOOD 👌
• 37% – 43% → Still workable
• 43% – 50% → Tight… but possible
• Over 50% → 🚩 Houston, we got a problem

(Some programs like FHA and VA can stretch a little higher, but don’t get cute… lenders still look at risk.)

⚠️ Why DTI Matters More Than You Think

DTI is not just about approval…

It impacts:

👉 How much house can you qualify for
👉 Your interest rate
👉 Your loan options
👉 Your negotiating power

Translation?

Your DTI controls your buying power.

🧠 The Biggest Mistakes People Make

Let’s talk about it:

❌ Buying a car before buying a house
❌ Maxing out credit cards
❌ Ignoring student loan payments
❌ Thinking “I make good money, I’m fine.”

Income alone does NOT save you.

Structure does. Strategy does.

🔧 How to Fix Your DTI (Fast + Smart)

If your numbers are off, don’t panic… adjust.

💳 Pay down credit cards first (this gives you the fastest results) 🚫 Avoid taking on new debt before applying (no new cars, no new cards) 💰 Increase your income (side hustle, overtime, extra streams) 🔄 Refinance or consolidate debt to lower monthly payments 🧠 Use the right loan strategy (this part matters more than people think)

Sometimes it’s not about doing more…It’s about moving smarter.

🎯 Coach Moore Thoughts

DTI is one of those quiet gatekeepers.

It doesn’t care how hard you work…
It cares how your money is flowing.

And the difference between:

❌ “You’re not approved yet.”
and
✅ “You’re cleared to close.”

…can literally come down to a few percentage points.

🔥Let’s Get You Positioned

Listen… you don’t need to guess your numbers.

✨ If you want help understanding where you stand, breaking this down, and asking questions without pressure…
Pull up to the Legacy Energy Lounge (FREE)

💼 If you’re ready to clean your DTI up, build a real strategy, and get in position to buy…
Step into the Legacy Energy Academy + Million Dollar Net Worth Challenge

You’re not “bad with money”…
You just haven’t been shown the play yet.