Car Payments and Your Home Purchase - Utah County Real Estate
By Robert A. Hulme, Home Listing Partner
(Home Buyer Realty Utah)
By: Robert A. Hulme - Realtor - Loan Officer -Utah County, Including Provo, Orem, Pleasant Grove, American Fork, Lehi, Highland, Alpine and Cedar Hills, Eagle Mountain, Payson, Saratoga Springs, Spanish Fork, , Springville, Mortgage Xpress, Agent When determining your ability to qualify for a home loan, a lender looks at what is called your "debt-to-income ratio. The debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner's association fees. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, etc. Buying a new car during the Home Loan Process can drastically affect the outc...