Loan Officer how-to

How to Calculate Debt-to-Income Ratio

DTI is one of the most important approval factors.

Updated By the Career Education Institute Curriculum Team
Quick answer

DTI is one of the most important approval factors. In short: add; add; calculate, then complete the remaining steps below.

Step by step

  1. Add monthly debt payments from the credit report.

  2. Add the proposed housing payment.

  3. Calculate gross monthly income.

  4. Divide total debts by income.

  5. Compare with program limits.

  6. Look for ways to improve if too high.

Safety reminders for loan officers

  • Protect borrower data and follow privacy laws
  • Follow fair lending and anti-discrimination rules
  • Watch for fraud and identity theft
  • Set work-life boundaries during busy markets

Preapproval · DTI · LTV · APR · Rate lock · Underwriting: see the full loan officer glossary.

More loan officer how-to guides

Learn this in Loan Officer trainingTake the practice test
Enroll in trainingTake fit quiz