Tag: affordability ratios

  • What Banks Look At Before Giving You a Loan

    What Banks Look At Before Giving You a Loan

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    by

    Dayton Outar
    in

    When banks decide whether to give someone a loan, they want to know one thing: Can this person really afford it? To help answer that, they use affordability ratios — simple comparisons between income (how much money you earn) and debt (how much money you owe people). 1. Debt-to-Income This shows how financially stretched someone…