Are you “driving your house?” Depending on the expert, our millennials can be living with zero debt or lots of debt.
Do millennials hate debt because they watched their parents get wrapped up in it, or is it because they themselves are already feeling the effects of it from credit cards, car payments, and student loans?
No matter if you’re a baby boomer or a millennial, people are people—we have to figure out how to live, and if you want to buy a house, you need to start thinking about your debt-to-income ratio (DTI).
“If you want to buy a house, you need to start thinking about your debt-to-income ratio.”
When your lender is looking at how much you can afford in a mortgage payment, you’re looking at a 30-year commitment, so they need to see that you can move around a little bit quicker if times get lean or if times get fat. If you have a rent payment that is $2,500 a month, a car payment that is $600 a month, and student loans upwards of $700 or $800 a month, you’re not going to be able to move quickly since you have these long-term commitments.
As consumers and as Americans we need to be asking ourselves, “How much do you need? How much do you want? What are you going to do for yourself and your family moving forward?”
If you have any questions about what it means to be financially responsible both today and years from now or if you’re looking to sell your home and make a move, feel free to reach out to me. Let’s make great decisions together.