It's a nerve-wracking process, so I think it's normal to be nervous - but if you're ready to purchase, then jump in! It seems like you have a pretty good handle on your scores & shouldn't have much of a problem!
There are a few questions to answer to help you know if you're ready to move forward...
Are you looking for a new construction or for a resale?
What price range are you thinking?
How much do you have for a down payment?
What is your total income by yourself and would you qualifty for the loan by yourself with that income?
Start with those and I think we can all guide you a little better.
Heh, now there are threads going...should probalby let one die off and continue the conversation in this one.
Reason I was asking about the new build vs resale is with the new sale you can have more time to correct some credit problems usually, and it could be easier to qualify if you use the builder's mortgage company.
I don't see they the front end ratio is such a concern. For a $200k mortgage at 3.5% interest, you're payment would be in the $1300 range (inc. taxes, insurance), which means you'd need to make about $4,650/month or $55,800 per year and it sounds like you do by yourself. If you both are on the loan and combine your income, it shoulds like it shouldn't be a problem at all.
How is your self-employment setup? Incorprated or?
No, you can be a Sole Proprietor, tha'ts not a problem. You'll just need to show them your taxes for the past two years and figure out what your income is (there are things you can add back in for example, so you don't have to pay taxes on them but still get to count them as income).
You can download this form which will guide you in how to figure out your income. I used it for myself and was accurate.