Before you go in, it's wise to contact the financial institution or your mortgage broker to get a handle on the policy for calculating self-employed cashflows and payment abilities. Forewarned is forearmed. A particular ratio that might fly with one, will flop with another. Some lenders demand your application have all three elements, others are comfortable with two. To successfully negotiate a mortgage, remember that attitude counts.
Lending has a very human element to it.
The principal reason many mortgages are declined is because of poor communications between the client and the potential lending institution. In other words, comb your hair, have tidy and comprehensive paperwork and try not to shriek as per the opening paragraph to this article. In this crazy world, go long. Nobody has the proverbial crystal ball, but rates could suddenly rise. Play it safe and go for five years.