The debt that will be used on your mortgage loan application will largely be what comes off of your credit report. This mainly means things like installment payments, which includes car payments. It also means revolving debt, which is made up of credit card debt.
What it doesn’t include, in most cases, are things like monthly expenses for groceries, clothing, etc.
What you will also need to disclose, even if it isn’t on your credit report, is any type of alimony or child support payments that you are required to make, though they would appear on a divorce decree.
If you have this type of debt and you don’t disclose it, if the lender were to find out about it through court documents (yes, they do pull those), then that is considered fraud and would start a new process in itself.
All of the debt on your credit report will be used to calculate your financial ratios, with at least one exception. This is installment debt, such as a car loan, where there are 10 or fewer payments remaining on the loan. At this point in the loan, the lender will remove this debt from your ratios.
Along these lines, it is a good idea to have your credit regularly pulled so you can see exactly what the lender will see when they pull it at the time of application.
Should you have further questions I can answer about debt on your mortgage application or even would like me to pull your credit, please give me a call.