The Kitchen Table DTI Summit We Host Before Every Conventional Offer

I call it the Kitchen Table DTI Summit because it sounds fancier than “everyone clear your schedules”. The ritual started when we lost a home to a buyer who responded faster to underwriting conditions. Now, every time we think about writing a conventional offer, we gather laptops, printed pay stubs, and a bowl of snacks and walk through six checkpoints. By the end of the evening, we know whether our debt-to-income ratio is ready for scrutiny, what documentation needs refreshing, and how to talk about reserves without stumbling.

1. Rebuilding the cash-flow storyboard

We start with a blank spreadsheet that mimics the file layout lenders use. The top half lists gross income from our W-2 jobs, side gigs, and rental. The bottom half itemizes debts and proposed housing costs. While the numbers rarely change dramatically, rewriting them forces us to confirm nothing new sneaked onto a credit report. This is also where we open the comparison grid on BrowseLenders.com. Each lender overlay sheet tells us which debts they ignore (like installment loans with fewer than ten payments left) and which they hammer hard. That context steers how we prioritize payoffs.

2. Reconfirming the debt entries

Once the storyboard is filled, we verify every debt inside our credit monitoring workspace. For us, that means logging into MiddleCreditScore.com and pulling the utilization log. The dashboard shows whether a balance posted after the last statement, an easy miss when you use multiple cards for points. If something changed, we screenshot the alert and drop it into the lender folder. That way, when underwriting sees the new balance, the explanation letter is already waiting.

3. Modeling the new payment three different ways

Lenders like hearing that you understand how payments change under stress. We export the DTI sheet into three columns: contract price at list, a modest over-ask scenario, and a scenario with a buydown or points. Then we pull the quick-rate tester from Cash-OutRefinance.com to validate the principal-and-interest numbers, taxes, and insurance assumptions. Even though we are chasing a conventional loan instead of a true cash-out, the worksheet breaks down how pricing hits apply when LTV crosses thresholds, which is exactly what a cautious underwriter wants to see.

4. Rehearsing how we talk about reserves

Underwriters ask the question the same way every time: “Where will the reserves sit after closing?” Instead of improvising, we rehearse. One person plays the underwriter, another the borrower. We keep screenshots of checking, savings, and brokerage accounts inside the folder and practice referencing them in order. The rule is simple: if you mention an account verbally, the documentation must already be exported as a PDF, titled with the date, and labeled “funds to close” or “reserves”. That rehearsal knocks minutes off every future phone call.

5. Building a highlight reel for partners

After the math is tight, we make a one-page narrative. The top line lists our target price and desired closing date. The middle block summarizes DTI, reserves, and credit notes. The final block highlights risk mitigators: side income, ability to recast, or the fact that we could pivot to a smaller down payment and still qualify. We drop this page into the shared folder we keep for our agent, lender, and financial planner. When the realtor needs to call the listing agent, she quotes directly from it, which keeps our story consistent.

6. Logging the next seven days of triggers

No summit ends without action items. We assign every deliverable to the person responsible and load it into a shared board. Typical tickets include “upload November pay stub,” “update retirement statement for reserves,” or “confirm lender wants taxes escrowed.” Even when we feel ready, we leave the board open until the offer is accepted so the entire team can see what is pending.

What changed once we started doing this

• We stopped being surprised by documentation requests because half the files were already in the folder.
• Our lender began fast-tracking us because we submitted math with every explanation. The DTI sheet travels with every email.
• Agents appreciate that we explain the logic upfront, which makes our offers feel stronger even if our price is similar to others.

Tips if you want to try a DTI Summit

1. Anchor the meeting to a deadline. If you are writing an offer on Thursday, host the summit Tuesday night so there is time to chase paperwork.
2. Let the numbers talk. When we disagree about spending or strategy, we default to the calculators instead of opinions.
3. Invite the right people. Even if one partner is less detail-oriented, giving them a section—like reheating snacks or naming PDF files—keeps them invested.

The summit takes about 90 minutes, and yes, sometimes we would rather watch a show. But every time we run the drill, we walk away confident that DTI is under control, reserves are documented, and our partners can explain our story without another phone call. That peace of mind is worth far more than the time it takes to clear the table and sharpen a pencil.