Why You Should Check Your Debt-to-Income Ratio Before House Hunting

By Josh Painter

Josh Painter is a coach, philanthropist, and the author of the book Best Version Ever.

If you’re planning to buy a home in 2026, here’s the truth: your debt-to-income ratio, or DTI, could determine whether your mortgage gets approved. If you don’t manage it, you could miss out on the home you want.

Here’s what you need to know to stay on track.

DTI is the biggest factor in mortgage approval in 2026. In 2026, DTI will be the first thing lenders check. They want to know if you can handle your monthly payments without stretching your finances too thin. If your DTI is too high, no matter how strong your credit is, your mortgage will likely be denied.

What’s the Ideal DTI? Most lenders prefer a DTI under 36%. Some programs allow up to 43%, but that is pushing it, especially in a tighter market. Lower is always better.

How to fix your DTI quickly. If your DTI is higher than you want, here are several steps you can take:

• Pay down high-interest debt first, starting with credit cards and personal loans.
• Avoid taking on new debt, such as new credit cards or car loans.
• Increase your income, even with a side job, to lower your DTI.
• Adjust your home budget by considering lower-priced homes or realistic monthly payments.

Your DTI is the number one factor that can stand between you and your dream home in 2026. Take steps now to improve it, and you’ll be ready when it’s time to buy. If you ignore it, you risk missing out on the home you want.

If you have any questions or want to review your numbers, reach out to me at 951-265-3524 or email me at josh@morethanjustarealestateagent.com. I’m here to help.