Back to Glossary
Qualifying Ratios
January 19, 2023
Qualifying ratios are measurement tools banks and other financial organizations use during the loan underwriting process. An applicant's qualifying ratio, represented as a percentage number, is critical in deciding whether they will be authorized for financing and, in many cases, the loan conditions. In assessing whether to approve loan applications, lenders employ qualifying ratios, which are percentages that relate borrowers' financial commitments to their income. Qualifying ratios might differ between lenders and lending programs. In reviewing an application, they are frequently utilized with a borrower's credit score.
Related Topics
10 Best Home Builders in Nashville, TN: Find Your Dream Home Today
Wesley Mortgage 2023 Year-In-Review
What Is a Property Tax Lien
What Is an Adjustable Rate Mortgage (ARM)?
Navigating the Process of Mortgage Modification
What Is Non-Recourse Lending?
What Is a Short Sale?
When Is the First Mortgage Payment Due?