Mortgage tip: being in acknowledgement of where you are financially and how that relates to the market is a huge step in deciding when to a buy a home.
Mortgage tip: if one of the spouses is applying for a mortgage for another property in a sole and separate transaction, a quit claim deed at escrow is going to be required for the married spouse signing off on the transaction.
Lenders look at the minimum monthly obligations that you pay on your debts. They take those minimum payments and add those to a proposed total mortgage payment reflective of principal, interest, taxes, insurance and PMI (Private Mortgage Insurance) and then divide that number by your gross income. This creates your debt to income ratio, which is a barometer that lenders use to determine your ability to repay.