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Hey Crackdclaw,

Thanks for the info.

From the fine print on one of the prequal offers: "The amount of the loan and the exact interest rate will depend on your creditworthiness, the property used as collateral, your annual income, your debt-to-income ratio, and the loan-to-value ratio of your collateral."

Debt-to-income ratio is the only one of the above that is "iffy" for me. I came across the 40% DTI number on several different websites/offers. I have also seen the 45% number during my research. I figured if I could understand how DTI is calculated, and could easily lower it, I would put myself in a better position when I applied.

It's very possible that some lenders treat DTI strictly as pass/fail and do not use it to adjust the rate.
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