Applying for a Loan Answers

Johnny’s monthly expenses and income are listed below. Calculate Johnny’s debt-to-income (DTI) ratio. Johnny's Monthly Debt and Income Housing: Rent $950.00 Renter's Insurance $25.00 Credit: Student $250.00 Car $239.00 Credit Card #1 $25.00 (minimum) Credit Card #2 $40.00 (minimum) Income: Sales Rep $4,400.00 Tutoring $600.00

What percent does a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant?

Which of the following is something a lender will not consider when reviewing your loan application?

Which of the following is something a lender will not consider when reviewing your loan application?

John just moved out of state and, in doing so, had to take a salary cut. At his previous job, his annual salary was $47,000 and his monthly expenses included a $850 rent payment, a $325 car payment, and $375 in minimum credit card payments. His new job has a salary of $43,500. He has the same car payment and minimum credit card payments, but his new apartment costs a mere $625 per month. How did John's move affect his debt-to-income (DTI) ratio?

The debt-to-income (DTI) ratio of a borrower is used to compare _____ to the borrower’s gross monthly income.

Ralph is thinking of switching jobs. He want to make sure that his new salary maintains a debt-to-income (DTI) ratio of at most 36%. His DTI ratio is currently 29% with a gross monthly income of $3,700. What minimum gross monthly income will Ralph need to maintain a DTI ratio of 36%?

Collateral can be beneficial for borrowers when applying for a loan by __________.