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

Estate Planning, Paper on Estate Planning (3–5 pages) Evaluate the tools c...

Paper on Estate Planning (3–5 pages) Evaluate the tools commonly used in estate planning, including trusts, life insurance, and annuities. Compare the tools as to how they would a

Asset management, Which of the following is not considered to be an investm...

Which of the following is not considered to be an investment objective

1, what will happen to the loss on account of premium redemption of debentu...

what will happen to the loss on account of premium redemption of debenture through sinking fund? Where do i close this account to?

The income statement and the balance sheet, Conduct research and explain th...

Conduct research and explain the companies, their operations, locations, markets, and lines of business. Collect financial statements for the past three years, fiscal or calendar .

what is their average aggregate inventory value, 1. The Marlin Company ope...

1. The Marlin Company operates 50 weeks a year, and its cost of goods sold last year was $1,500,000. The firm carries six items in inventory: three raw materials, two work-in-proce

Discuss capital budgeting techniques, Discuss capital budgeting technique...

Discuss capital budgeting techniques including : the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one.  Di

Assignment, according to given specialization take down an industry and in...

according to given specialization take down an industry and investigate its managerial hierarchy to describe each of one of the managerial work level functioning

T accounts, Accounting Exercise AVM 386 Fall 2014 Misty Mark, an infamous ...

Accounting Exercise AVM 386 Fall 2014 Misty Mark, an infamous archer, decided to open an archery business called Bows and Biceps. The following is a list of transactions for Bows

Common Stock Valuation, Bates, inc. pays a dividend of $1.25 and is current...

Bates, inc. pays a dividend of $1.25 and is currently selling for $36.95. If investors require a 12% return on their investment, what growth rate would Bates Inc. have to provide t

Example of conversion ratio and conversion price, Example of Conversion Rat...

Example of Conversion Ratio and Conversion Price ABC Company Ltd books as:   10.000, Sh.20 ordinary share capital 10,000, Shs.10 8% preference share c

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