To buy a house, lenders primarily look at two distinct "credit to debt" metrics: your and your Credit Utilization Ratio . While DTI determines how much you can afford to borrow, your credit utilization directly impacts the credit score needed to qualify for the best interest rates. 1. Debt-to-Income (DTI) Ratio
: This is the gold standard for most conventional lenders: credit to debt ratio to buy a house
: Your total monthly debt—including the new mortgage, credit cards, car loans, and student loans—should ideally be 36% or less. Maximum Limits by Loan Type : To buy a house, lenders primarily look at