Joanna is preparing to buy her first home by applying for a mortgage. All of the following are items lenders will look at to determine Joanna's ability and willingness to repay the loan EXCEPT

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Several measures are commonly applied to assess your ability to repay the loan. In addition to requiring some work history, most lenders will apply two ratio tests. First, the ratio of your total mortgage payment (including principal, interest, property taxes, and homeowners insurance) to your gross monthly income can rarely be greater than 28 percent. Second, the ratio of your credit payments (including credit cards, car loan or lease payments, and mortgage payment) to your gross monthly income is limited to no more than 36 percent. Lenders also look at your willingness to repay the loan by looking at how you have managed debt obligations in the past. The primary source of this information is your credit report.

Joanna Is Preparing to Buy Her First Home by Applying