DTI Explained: The small $250/mo credit card that cuts $40k from your house budget

Hi forum folks! I volunteer here to give free advice. The single biggest mistake I see buyers make right before getting approved is getting a new car lease or financing a couch. Why does a $250/mo minimum payment hurt so much? Because in mortgage-land, lenders look at Debt-to-Income (DTI). A $250 recurring payment can take away $40,000 to $50,000 of your borrowing capability because it consumes the monthly debt bucket. Live like you're broke for 6 months before your loan closes. No new credit. No big cash shifts. Keep your head down!