Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one of the ways that lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.
Delinquent is another term for being late on your payments. Your loan can become delinquent when you miss a payment or don’t make a full payment by the due date. After you are delinquent for a certain period of time, a lender or servicer may begin the foreclosure process.
A down payment is the amount you pay toward the home upfront. You put a percentage of the home’s value down and borrow the rest through your mortgage loan. Generally, the larger the down payment you make, the lower the interest rate you will receive and the more likely you are to be approved for a loan.
(Source: Consumer Financial Protection Bureau)
