For many first time home buyers or current homeowners looking to move up, can be in for a shock. Even if they are aware of the higher payment from their current rent or mortgage and are ok with it and still have qualifying debt ratios, lenders still look at payment shock as a factor in determining whether or not your loan is approved.

If you have been making payments on a $100k mortgage and are going to jump into a million dollar home some lenders will look at this in an unfavorable manner even if your income supports it.

Every lender and situation is different so you must inquire/apply for a mortgage and we will be able to assist you in purchasing that particular property.

One reason for DTI requirements is to prevent payment shock.

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