In order to take out a loan, you’ll need to apply and then get approved. Approval is determined in large part by your credit score, but other factors come into play like your debt-to-income ratio and income.
Watch the video to learn more about Applying for a Loan, then test your knowledge at the end of the lesson.
Once you factor in new loan payments, your DTI should be:
A. 36% or less
B. 46% or less
C. 56% or less
D. 66% or less
Special loan offers like 0% down or no interest for a year never cost more in the long run.
A. True
B. False
When applying for a loan, lenders will ask you to provide your:
A. Name and Social Security number
B. Current and past addresses
C. Employment status and income amount
D. All of the above