Finance
A North Dakota borrower has a debt-to-income ratio that is too high to qualify for a conventional mortgage. Which of the following would most likely improve their DTI?
AIncreasing the purchase price
BPaying off existing debts before applying✓ Correct
CChoosing a property with higher taxes
DReducing the down payment
Explanation
Debt-to-income ratio (DTI) compares monthly debt payments to gross monthly income. Paying off existing debts reduces monthly obligations, thereby lowering the DTI ratio and improving loan qualification chances.
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