Take the dollar amounts from Worksheet 1 and:

For the housing expense ratio,

Divide Total monthly housing expense by Total monthly income

= ________________________

For the all debt payments ration,

Divide (the sum of Total monthly payments and Total monthly housing expense) by Total monthly income

= ________________________

Be prepared to provide certain documentation about your income (W2s for prior years and year-to-date pay stubs), current debts (account number, outstanding balance, and creditor�s address for each), and the purchase contract for the home you want to buy. When you file your application, ask the lender how long the approval process will take. The time may vary depending on the complexity of your mortgage, current market conditions, and whether you have to provide additional information. It�s common for a decision to be made within 30 days after the lender receives all the necessary information. Applications for FHA or VA loans may take longer