Key Ratios Banks Use to Approve Your Home Loan | Explained

Discover the key financial ratios that banks and financial institutions use to approve home loans. This video explains Debt-to-Income Ratio, Loan-to-Value Ratio, Credit Score, and more, helping you understand what lenders look for and how to improve your chances of getting approved. Watch now to make your home loan process smoother!
#HomeLoan
#LoanApproval
#FinancialRatios
#DebtToIncomeRatio
#LoanToValueRatio
#CreditScore
#MortgageTips
#HomeBuying
#FinancialInstitutions
#Banking
#LoanTips
#HomeLoanApproval
#PersonalFinance
#RealEstate
#FirstTimeHomeBuyer

[@pradeepryadav94]

Which is Top 3 ratio to which bank always look upon for approval of loan

[@CAPoojaVivekRao]

Thank you for your valuable comment. Top Three Ratios considered by Banks Before Approving Home Loans 1. Debt-to-Income Ratio (DTI): The Debt-to-Income Ratio measures your total monthly debt payments against your gross monthly income. It helps banks determine if you can manage monthly payments and repay the loan. A lower DTI ratio indicates better financial health and a higher likelihood of loan approval. 2. Loan-to-Value Ratio (LTV) The Loan-to-Value Ratio compares the loan amount to the appraised value of the property you want to purchase. It helps lenders assess the risk involved in lending money. A lower LTV ratio means you are borrowing less relative to the property's value, which is less risky for the lender. 3. Credit Utilization Ratio: The Credit Utilization Ratio measures the amount of credit you are using relative to your total available credit. It reflects how much of your available credit you are currently using. A lower credit utilization ratio indicates responsible credit management and can positively impact your credit score. Apart from these ratios other factors are also considered like applicant's credit score, income and employment history, value of the collateral,size of down payment, loan term etc. If you found the video useful do subscribe to my channel!!