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

How can you analysis organization position, The organization performed very...

The organization performed very well during the last year and generated profit in each segment. In the food and beverage segment, the company has made 30% net profit and in rooms a

Som120 project, Frequency distribution for amount charged with starting poi...

Frequency distribution for amount charged with starting point 1800, class width 1000. For income use starting point 20 and class width of 10.

#titleMrs.., You own a two-bond portfolio. Each has a par value of $1,000. ...

You own a two-bond portfolio. Each has a par value of $1,000. Bond A matures in five years, has a coupon rate of 8 percent, and has an annual yield to maturity of 9.20 percent. Bon

Price earnings ratio, Price Earnings Ratio Price earnings (P/E) or rat...

Price Earnings Ratio Price earnings (P/E) or ratio =  Market price per share (MPS)/Earnings per share                                     OR    = Market value of equity /Ea

Calculate the lump sum, Your daughter is a beginning freshman in high schoo...

Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her nex

Option Pricing, Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1)...

Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1) + (1-a)C(K2) where C(k) is the European option price with strike K. All the options in this question are assumed to be

Finance functions, Finance Functions The functions of Financial Manage...

Finance Functions The functions of Financial Manager can broadly be split into two:  The Managerial Functions and The Routine functions. Managerial Finance Functions

Development banks and financial institutions, Development Banks and Financi...

Development Banks and Financial Institutions There are some sectors in the economy such may not secure adequate funds from commercial banks for different motives. a) May re

Determaine the dol and business risk, From the following selected operating...

From the following selected operating date, determaine the DOL. Which company has the greater amount of business risk? Why? Particulars A Ltd

Write Your Message!

Captcha
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!

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