Real Estate - Mortgage Prequalification, Finance Basics

Real Estate - Mortgage Prequalification, Finance Basics

Assignment Help:

Bob and Jackie came to your bank seeking an FHA mortgage. They
want to know how large a mortgage they would be qualified for and
what the terms would be. Bob is a pastry chef ($45,000/yr. gross)
and Jackie is a software programmer ($60,000/yr. gross). They
currently pay $300/mo. on student loans // have a $225/mo. car
payment with 5 years remaining // Pay $250/mo. on credit card debt
// and $180.mo. for utilities
Their credit rating is 640 and they have $8,000 in savings.

Bank requirements for FHA loans:
? Mortgage/Total debt ratio use 29/50 for this project - (Duane 26/36)
? 1 ¾% loan origination fee
? 1 ¼% mortgage insurance
? 4% interest rate
? 30 year amortized loan

Questions:
1. How large a loan can they qualify for?
2. For that size FHA loan, what will their down payment be?
3. What will their origination fee be?
4. What will their monthly payments be?
5. What documents will you need from Bob and Jackie?
6. What ACTS govern the disclosures that will you need to make to Bob and
Jackie?
7. What documents will you need to obtain regarding the property?

Related Discussions:- Real Estate - Mortgage Prequalification

Financial planning processes, explain the financial planning process in a p...

explain the financial planning process in a private limited company

Risk-return trade-off, Risk-Return Trade-Off Most financial decisions ...

Risk-Return Trade-Off Most financial decisions comprise alternative courses of action. The choices have different returns and risk. As like example, must we buy a replacement

Reasons for major growth in venture capital, Reasons for major Growth in Ve...

Reasons for major Growth in Venture Capital Reasons for Significant Growth in the Developed Countries in Venture Capital i) Public attitude that is a favorable attitude

What do you meant by the term life insurance contract, Question 1: (a) ...

Question 1: (a) What do you meant by the term ‘Life Insurance Contract'? (b) Many people prefer to choose Single life policies compared to Joint life policies. Why is t

Percent of sales method, formula of spontaneous asset

formula of spontaneous asset

Finance, If you inherited $ 45,000 today and invested all of it in a securi...

If you inherited $ 45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

Short term fianacing, discuss the three approaches to the short -term finan...

discuss the three approaches to the short -term financing problem and provide relevant examples of each.

#title. EM13545112., Define benefit plan for the employee participants

Define benefit plan for the employee participants

Marginal cost and marginal revenue, Use the concepts of marginal cost and m...

Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cos

#toption, expression of underlying asset''s price at maturity T for lookbac...

expression of underlying asset''s price at maturity T for lookback option.

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd