My husband and I are trying to buy a house. We are going to be starting the mortgage application this week. (we are using FHA if that matters) I know the banks look at your debt to income ratio to partially judge if you can afford a loan. It is my understanding that they look at the car loans, school bills, credit cards, etc. that are on your credit report and do not count things like utilities that are not on your credit report. My husband has a school bill that is not on our credit report. It is non-interest and is paid directly to the school each month. Will this be counted in that ratio? Are they going to question why we are sending the school a check each month? thanks!
P.s. please do not assume we are getting ourselves in “over our head” with a mortgage. The mortgage for this house (with taxes and insurance included) will be less than what we have paid in rent for the past 5 years. I was just wondering if this was something we should disclose to them/if it would matter since it is not on our credit report. etc. Thanks to those who submitted helpful answers.