Foundations of real estate 6

3/9/2020 Sample Content Topic

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Qualifying for a Mortgage

In your Learning Activity you received some practice regarding the housing expense ratio and the debt-to-income ratio. In this assignment, you will apply these ratios to a scenario to qualify yourself for a mortgage.

Scenario: You have found a home you wish to purchase. The PITI (i.e., monthly payments) on the mortgage you have applied for is $1425.00 per month. You gross monthly income is $4,750.00 per month and your car payments are only $150 for the next 4 years since you paid the majority of the price of the car in cash, and you have no credit card debt. Additionally, you only have $10,000 to put down on the property.

Access the formulas for calculating the housing expense rati o and debt-to-income ratio

Calculate your housing expense ratio.

Then calculate the debt-to-income ratio.

Would you qualify for a conventional loan? Why or why not? Provide both ratios and your reasoning.

Explain how you would proceed.

Access the Unit 6 Assignment grading rubric.

Respond in a minimum of 250 words in a double-spaced Word document using 12-point, Times New Roman font. Submit your response to the Unit 6 Assignment Dropbox.

Assignment Details