Debt-to-income ratio target - 20-30%
How to meet the target:
- Pay off small loans
- Reduce your credit card balances
- Increase your income by co-signing with your spouse
Loan-to-value ratio target - less than 80%
How to meet the target:
- Increase your down payment to at least 20% of your new home or car's value
- Negotiate to reduce the price with the seller
- Select a less expensive home or car to purchase