When you apply for a mortgage, lenders look at several parts of your financial profile before deciding whether the requested financing fits your circumstances. One important measure is the debt-to-income ratio, commonly called DTI. It compares your recurring monthly debt payments with your gross monthly income. Understanding DTI is especially useful when planning a loan to build a house because construction financing may involve different costs and payment structures than a standard home purchase. Borrowers considering a renovation mortgage may also need to understand how the proposed financing affects their overall monthly obligations.